Oh my!!
Gas prices jumped an amazing 12 cents per gallon here in town today!
My question is WHY!!??!!??!!??
I can't afford to drive back and forth to work with the way gas prices are skyrocketing.
The price per gallon here is now a whopping $2.21. Will it ever stop rising?!
3 comments, add yours here:
You asked....
Well the high price of gas is due to price of crude oil staying higher than many expected it to. So now we need to ask, why is crude oil still so freaking high?!?!?! Well I am glad you asked! Iraq oil is still not flowing like everyone thought it would. Add in the fact that 300,000 to 400,000 barrels of oil PER DAY coming from Nigeria is just not coming due to political turmoil. Add in the fact that Venezuelan oil production still has not returned to the levels it was at before their huge oil strike. Now the kicker, OPEC instead of increasing quotas has actually lowered them.
Now, let’s look at what affects the cost as it gets to the pumps:
46% of the price is for crude
21% to refining
11% to distribution and marketing
22% to taxes
Your question is one I hear a lot, so I looked it up on the internet. Makes sense to me, we are getting less oil so the supply is limited. Supply and Demand.
Why is it not showing up my comment? This blogger thing grows stranger by the day......
#2.45 here in California is about the lowest I can find.
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