Well, speaking for the US, each state (and in some cases many counties in a state) has very different laws regarding gasoline formulations, which also vary by season. A refinery has to be stopped, retooled, and restarted just to make a North Carolina blend as opposed to a South Carolina blend, and so on.
Added to that, China and India are consuming gasoline at breakneck pace, and accelerating their consumption even faster than the US.
Added to that, US SUV sales just had an all-time record month in April (per Wall Street Journal earlier this week). = big gas guzzlers just burning that gas. I frankly don't understand why anyone can justify some gigantic landbruiser unless your job truly requires it, and the worst part is those people who drive giganto-SUVs with "Be Green" bumperstickers. Do as I say, not as I do...
Added to that, the US economy is improving, and a lot more big rigs are on the road = more diesel consumption.
Added to that, the US just had a record cold winter. Many homes heat with oil. In a poor economy, people also skimp on the required periodic maintenance for oil furnaces = lower efficiency = more oil burned.
Added to that, analysts say US $5-$10 of the per-barrel oil price is due to fear (terrorism, war, etc. after the attacks on Iraqi and Saudi oil facilities).
Added to that, per Wall Street Journal again, the world's major oil fields are on the down side of their yield curves. This means each barrel of oil starts to get a little more expensive to extract = per-barrel price goes up over the long run. We are already tapping all the easy reserves, and both because of shareholder and executive shortsightedness but also more because of all the non-constructive enviro-whiners we are not tapping any innovative or other sources or hydrocarbons. Nor are we daring to go back to nuclear, nor are we seriously researching fusion, nor are we going to space to set the foundation for extracting hydrocarbons from Jupiter's moons, for example, in 50 or 100 years, or inventing ways to store raw sunpower undiluted by atmosphere and shipping it back to Earth somehow for local use (implementation detail

). I could go on, but you get the point.
During World War II the US government (and I'm sure others) constantly admonished people "is this trip really necessary?" Today we live in an era of affluence where gasoline is still cheaper than milk, we expect to have it all and cheaply please, and we forget that when adjusting for inflation gas (in the US, anyway) is still *much* cheaper than 20 or 30 years ago, and that our cars get twice the mileage and generate one percent (yup) of the pollution of 30 years ago.
Finally, without taking sides, I am glad that US President Bush is resisting short-sighted calls to affect the market and keeping the US Strategic Reserve full. Better the country have some emergency gasoline than all the mega-SUV drivers get yet another government subsidy (what do I mean? In 2003 and 2004, if you buy a 6000 lb. or heavier SUV, you can get a tax break for it here... Sheesh, how about an "I'm sorry" environmental contribution to future generations instead???)
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Originally Posted by sneezinglion
Gas has been running at about 1.85/gallon for the last several months, but just this week hiked to 2.04......goo thing I filled up last weekend when it was still cheap....heh.
When I first started driving in '93 gas was .80/gallon. *sigh*
I just do not get how gas prices are set. IS there 3 times as much usage of gas thus driving up the prices? OR is there only 1/3 of the supply of crude? or are the gas companies seeing that demad is up 20% so we should increase prices by 300%??!?!?!?!?  
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