Why are gas prices so high?

[gonzolawyer]

Gas in Tucson is now averaging around $2.25/gal for regular. It's gone up a quarter in the last month.

Why are gas prices so high now?

And didn't Paul Wolfowitz promise that we'd steal the Iraqi oil in return for the $87 Billion war?

Comments

[m_fallenangel]

Yeah. Hell if I understand conquering a resource-rich country for, among other reasons, cheap oil and then having oil hit its highest prices ever.

[selfishgene]

If Bush's cronies are all in oil, then why would they want cheap oil? Think about it. Imagine Iraqi oil is permanently off the market, due to civil war. Then American oil becomes more expensive, which means more profits for Bush's buddies.
The actual result is the expected result. OK, the peasants were told something different, but who ever tells peasants the truth?

[m_fallenangel]

True, but increasing supply, cutting prices and making it up on volume makes more economic sense in the long run. :(

[evilegg]

It's 2.30 here... someone ought to do a poll.

$100 oil

[peamasii]

Oil (and therefore gas prices) could, and according to the article below should, double within a few years. If it's sustainable, raise the prices. In Europe we pay well more than double the US prices (about $5.5 per gallon).

http://www.investorsinsight.com/print_preview.asp?id=jm040105

It remains to be seen whether most EU would be sustainable at $10+ per gallon though. :-0

[unrepentant]

Yes, it truly sucks...

[frauhedgehog]

Grocery prices have increased, too, with the higher cost of fuel for trucks. Technically, over the long term, it should spur development of new sources, extraction methods, and new technologies, hence better conservation. But at 15mpg it's a bitter pill.