Why Are Gas Prices So High?

Instead of asking "Why are gas prices so high?", ask yourself "How can I save money on gas?" instead!

One of the best ways is to beat high gas prices is with gas mileage improvements.

Gas For Less Money at www.gasforlessmoney.com is a website devoted reducing the bite we're all feeling at the pump.

Topic covered include Hypermiling, gas mileage devices, gas mileage calculators, and of course loads of tips, tricks, and secrets!

Why are gas prices so high? Whatever the reason, the best way to combat them is with aggressive gas mileage improvements!

When you ask why are gas prices so high, do you ever wondered if it's actually worth driving across town for a lower price per gallon on gasoline? Whether it's worth driving a few extra miles to save a few cents per gallon?

Occasionally I'll get a call from a friend saying "Hey I just found a station selling regular for $x.xx per gallon" or whatever it is.

"Gas Calc" is a software program that will tell you exactly that!

The software asks you for the price at the close station, the price per gallon at the further station, etc., and then calculates how much you would save - or lose - by going across town to a cheaper gas station.

The "Gas Calc" gas price calculator software is included FREE with the
2008 ULTIMATE Gas Saver Guide.

A breakdown of gasoline and what we pay at the pump:

For an in-depth look at all the components that make up the cost, see "Why are gas prices so high?" at Gas For Less Money.

We've all been asking ourselves "Why are gas prices so high?" After all, less than 2 years ago, the price of gas was less than half what it is now.

The most common reasons given by people when asked that question are either "oil speculators" or "greedy oil companies". The truth is, neither is the reason.

It may come as a surprise, but marketing and profits only account for about 16% of what you pay for each gallon of gas. Sure, oil companies are recording record profits, but that's BECAUSE gas prices have gone up, not WHY gas prices have gone up!

The answer is actually quite mundane - Economics 101: demand has outstripped supply.

The world economy runs on energy, and most energy comes from oil. As China and India enter a hyper-accelerated industrialization period, with so much of the world's population, their thirst for oil has increased dramatically. In a world where we already matched supply with demand, this surge in demand has a huge impact.

While demand rises, refining capacity remains stagnant. Refineries had already been operating near their maximum, and no new refineries are being built, meaning that increasing demand cannot be met simply by pumping more oil from the ground.

Experts agree that the price of gasoline will continue to rise for a long time before it drops. So what do you do about increasingly higher prices?

The only practical answer is to improve gas mileage. Even though prices continue to go up, we can actually cut our real costs through gas mileage improvements. In fact, it is not unrealistic to save as much as 40% simply by changing how we drive.

Since 2004, gas prices have skyrocketed, and have never went back down.

Why are prices so high?

The two main reasons are that the access to crude oil has become increasingly difficult, and the increased demand for oil all of the world.

What can we do?

Driving a smaller car will save you money on gas.
When buying gas, use the lowest grade oil.
Drive slower.
Try driving in high gear.
Do not accelerate quickly and coast if possible.
Keep the weight of the car light as possible.

Gas prices are at a ridiculous high, and everyone wants to know the reasons behind this.

The simple reason why gas is so ridiculously expensive is because of inflation. Inflation is the increase in the supply of money which in turn raises the price of goods and services. The understanding behind this is, the more rare dollars are, the lower the price of goods; the less rare dollars are, the higher the price of goods. These days we have a large amount of dollars in the economy thanks to the government and Federal Reserve. The only way to reverse oil prices is to stop the Federal Reserve reducing the size of government and inflating.

It looks like the near future is going to hurt our wallets, and that gas prices will not go down quickly. However, there are alternatives we can apply to our driving styles, vehicles, etc. that will save us money.

These alternatives can be found at 2008 ULTIMATE Gas Saver Guide.

Why are gas prices so high?

We have a huge problem because gas prices use to be about $0.99 a gallon and now are almost $5.00 a gallon in most states. Most people are flabbergasted about what on earth could have possibly made the gas prices so high.

After some extensive research, I have found the real reasons why the prices are so high:

* Seasonal factors

* General demand and availability issues

* A high cost of crude oil

* Other factors - World events, wars and weather can also raise prices.

It looks like the price of gasoline will continue to rise for a long time before it drops. In the meantime, we can only improve our gas mileage by applying all the tips and techniques found at 2008 ULTIMATE Gas Saver Guide.

Because of the very effective marketing done by the big oil companies, most people believe that a higher octane gas will result in better performance, improved mileage, increased power, and will extend the life of their car.

However, regular octane gasoline is recommended for the majority of automobiles. Most of the time using higher octane gasoline won't provide any benefit whatsoever. It definitely will not make you car faster, run cleaner, or improve your mileage at all.

The difference between "regular" and "super" can usually turn out to be as much as fifty cents per gallon, and using the highest octane will almost always have no effect on the mileage, but will cost you more money.

With high gas prices the way they are, save some money by sticking to lower octane gasoline.