Why are gas prices so high?
People tend to blame to their choice of villain when complaining about the cost of gasoline these days, but there is more than one reason for achingly high prices.
For example, gasoline inventory is lower than normal. According to the EPA, during 12 consecutive weeks in February, March, and April, total U.S. gasoline inventories dropped by 15 percent. This is the sharpest decline over this ascribed time in recorded history. Also, lower import levels, refinery outages due to maintenance, and unplanned refinery incidents have contributed to a slowdown in supply growth. And yet, gas demand continues to rise despite prices well over $3.00 a gallon in many regions.
There are also global factors, such as increased demand for fuel by developing countries--including India and China--as well as tensions in the Persian Gulf, from where a large quantity of oil is sourced.
So, what does this mean for drivers this summer travel season? Prices are expected to remain high throughout the summer, because inventories are likely to remain low. As gasoline imports increase, domestic refineries come back into production, and as supplies improve, we could see prices come back down... possibly after the summer travel season. In the meantime, see our tips for saving fuel and our guide to fuel economy for information on fuel-efficient vehicles and alternative fuels. Also, check out the U.S. weekly gas prices in your region.
Previous
Posted by: Sarah | May 27, 2008 9:21:19 AM
We are going to have to start re-evaluating other options for transportation, not just carpool. I have been seeing a lot more motorcycles & scooters on the roads these days than ever, some of them get 50-60 MPG. Everyone is being squeezed in the wallet with the soaring gas prices, it's simply a matter of when you feel like you are financially uncomfortable enough to make a change.
Posted by: Matt | May 28, 2008 4:39:41 PM
Yes, where are the motor scooter reviews? I specifically looked to CR for this information.
Posted by: Keith | May 28, 2008 4:41:58 PM
To all the folks making long daily commutes (20+ miles) to work and then complaining about the fuel costs, remember this: no one is holding a gun to your head and forcing you to live so far from where you work. Move closer to your job, or find another job that's closer to home, but either way, you have no right to complain.
Posted by: Keith | May 28, 2008 4:47:56 PM
"RECORD PROFITS" is not proof of price gouging. A business can be successful without taking advantage of people.
The price of gas is going up due to simple supply and demand: increasing numbers of people every year, and decreasing supply of oil every year. Sure, other factors (such as weak U.S. dollar, political tensions in the middle east, refinery problems here in the US, etc) play into it, but they are not the core reason why prices are increasing.
Someone else here already hit it right on the head: if you want the cost of gasoline (and everything else, for that matter) to go down, the best thing you can do is stop having children. The U.S. population is exponentially out of control due to everyone feeling entitled to have tons of children. Remember this: every time a couple has more than two children, they are causing the overall population to grow over the long term.
Posted by: Tim | May 29, 2008 7:34:20 PM
There need to be reviews on Motor Scooters now! With gas up to $4.30 and diesel up to almost $6.00 in California, there needs to be a source of good information regarding this alternative form of transportation! With so many imports from China, and many different makes on the market, we all need some help sorting this stuff out!
Posted by: sherri | May 29, 2008 8:01:45 PM
I am getting debt do to high gas prices. because everything else is rising. I am having to use credit cards to pay for gas and food. I AM GETTING MYSELF IN MORE DEBT. In order for me to get a better paying job. I would have to drive further away. But that would mean more money for gas. So it would all be a waste. So the oil companies are making money while I am a single mother trying to feed my family. Why does our goverment save all the gas that our own country produces? I watch t.v. and hear all kinds of reasons for the gas prices. I just don't know who to believe. This country is going in debt. I think something needs to be done and soon. I don't want to be like all the other people who are living in there cars. and the goverment is giving us tax checks to boost the economy. Well I'll using mine to pay for bills!!!!!!!!!!!!
Posted by: me | May 30, 2008 11:17:29 AM
I think is time for u gyus to make some reviews on scooter and small motorcycles please,please
Posted by: Terri | May 30, 2008 5:20:54 PM
I would like to see info on scooters. I am going to buy one next month.
Posted by: J.D. Wilson | May 30, 2008 5:33:00 PM
Would CR please test and review some motor scooters?
Thanks much!
Posted by: ian | Jun 1, 2008 1:27:53 AM
aaaaayes, CR, how about the scooters.
Gas is 4+ now. 100-60 mpg for scooters. Yamah's Vino gets 75mpg for about $2.6K new!
Posted by: TD | Jun 1, 2008 11:41:34 AM
I've been a CU subscriber for a long time, and I come here before making any kind of purchase. It is a bit disappointing that the only forms of transportation for which I can read reviews are cars and bicycles. I agree with the several who submitted the request for reviews on scooters and motorcycles. Please start reviewing these alternative forms of transporation. We can get opinions elsewhere, but we really value what CU has to say.
Posted by: cassie | Jun 2, 2008 4:05:16 PM
I just joined CR hoping for reviews on motor scooters...There are none! anyone with suggestions on where to look...?
Posted by: CHARLES ANDERSON | Jun 3, 2008 3:05:28 AM
MOTOR SCOOTERS~ (NO GAS) IT'S TIME AGAIN IN 60'S I PURCHASED TWO NEW VESPA'S OK FOR THE FREEWAY ALSO WITH SPARE TIRE UNDER THE REAR FENDER, FOR $600~ BUCKS EACH, THE SALESMAN STATED IT WAS SAFE. HE LIED ! SMALL CARS HAVE TROUBLE.
THE VESPA'S LASTED WITH ONLY MINOR REPAIR TELL THE MID 80'S
AND WERE SOLD FOR $600~ EACH. CARS ARE NOT THAT LUCKY.
NOW THAT I AM OLDER THAN DIRT I AM LOOKING FOR AN STAGHT ELECTRIC CITY CAR LIKE A "ZENN" OR AN OLD ROMANTIC FRENCH 2-CV.
Posted by: L. Ruede | Jun 3, 2008 7:26:10 PM
I would like to see reviews asap on motor scooters and also electric or "power assisted" bicycles (both electric and "hybrid"--allowing some pedaling).
Posted by: CJ | Jun 4, 2008 9:26:08 AM
I am looking into buying a scooter and thought this website would be the logical place to start??!! Why are there no reviews?? Anyone out there have any info on makes or models to recommend or avoid? Thanks for any info!!
Posted by: M D | Jun 4, 2008 10:58:38 AM
Consumer Reports, please start reviewing scooters. I am very much considering a Vespa or similar for a non-highway commute.
Posted by: Jessica L | Jun 5, 2008 7:08:54 AM
I just came here to start looking for Motor Scooters, thinking it would be the place to begin. Apparently I wasn't the only one with that idea, and dissapointed at the lack of info. What's the hold up? I'm at a job that hasn't given pay increases in 5 years, I need to find a way to pay less for gas to continue getting to work!
Posted by: Clay | Jun 6, 2008 9:54:10 AM
I, too, was hoping for some reports on scooters, especially considering what I have heard of the cheap, unreliable Chinese scooters that have recently flooded the market.
Do try to keep up, CR.
Posted by: RoMin | Jun 6, 2008 8:30:59 PM
My wife drives a corvette and would consider a motor scooter to commute the five miles. Are scooters going to be rated in Consumer Reports soon?
Posted by: Jim C. | Jun 7, 2008 5:52:38 PM
It is supply and demand. If we continue to blame oil companies we will be worse off in the end. Do you beleive that Iran, Saudi Arabia give a hoot about gasoline companies. The upshot is more folks are using fuel than ever before (look at China and Inida ... billions of people, many times lareger in population than the USA and oil production it has been level. Not only is it flat we're giving billions of dollars to some countries that would rather see us "dead"
We should get off of oil asap. That will take years (decades) until then we need to produce more oil, preferabley US oil. I would rather keep more money in the USA for oil than give it to other countries, such as those in the middle east. We should also concerve.
So when a politician keeps on harping that the oil problem is the the fault of the oil companies and does not look at the root of the problem, we will get only more of the same.
Posted by: kearns9 | Jun 8, 2008 2:26:32 PM
I just signed up for reports on scooters. I wasted my money. This is the future. CR needs to get on board. I am disappointed
in CR not seeing this trend develop.
Posted by: cl | Jun 9, 2008 1:55:31 PM
Yes, please write a report on scooters. I too was dissappointed not to find any mention of them. If you don't do this work who do you recommend that we seek out to obtain it?
Posted by: Les | Jun 9, 2008 4:12:15 PM
Someone said CR needs to do an article rating motor scooters. I SECOND THE MOTION. In my town of 25,000 in S. Oregon, they're popping up on the streets all over the place. Consumers need to know which ones are dogs and which ones are dynamite.
Posted by: Keith | Jun 9, 2008 10:12:51 PM
I have been a long time CR member and enjoy this. Tonight I wanted to look into scooters, but to no avail! CR, if this is being monitored, please get us a review!
Posted by: Yvonne | Jun 9, 2008 11:32:06 PM
(CR)To Whom this may concern:
I am one of the many that came to CR to find Scooter info and was highly disappointed. There are many of us that want the reviews, please supply us with the info.
Anybody know an alternate place I can look up scooter reviews? I am in the market for a middle of the road one and would like to make an informed decision.
Thanks!