Why Are Gas Prices So High?

Gas prices? Does anyone else question why consumers end up dealing in futures when filling up at the pump?

The consumer pays immediately for the gas they put in their tank. The gas station pays upon delivery of the gasoline; the price is set prior to delivery. The refineries, most of wich are owned by big oil companies are dealing in futures.. ON THEIR OWN PRODUCT. So why does the consumer suffer immediately when the market hedges on futures? Why do we allow stochastics to be implimented on the consumption end? It happens in most industries, but the oil companies have perfected the model. The Weather Channel says a hurricane is coming, gas prices jump 20 cents, the storm never materializes, prices fall, but in the mean time... we paid more and it's all for not. Am I wrong, or did we just suppliment the income of some old CEO so he can be sure he gets his $250 million pension and 3% stock option even if millions of people lose their homes?

Public Comments

1. It's called windfall profits.
2. you know what you write and the only thing most of us understand is that gas prices at the gaspump are out of control. There is no other industry as powerful as the oil companys. There is individulally named brands like Amoco, Shell, Gulf, Mobile, and Exxon. And then independants which are supposed to charge less but they are also in on it. We often times end up blaming ourselfs for driving to much. For me it is a ughhh excuse me ha ha for being so dumb. Legislatures are in on it and those of us who think our represenatives represent us on this gas pricing issue? excuse me again ugghhh ha ha. They are not our legislatures the oil companys lobbyists own them and we as voters are the peons. The oil companys may as well be one U.S.A. Oil. We are powerless as individuals. Ok wait here is a thought lets not drive our cars for a week. Lets stay home on holidays. Lets not drive to our favorite vacation. Just stay home. Another ughhh ha ha. Well sir you know what is going on if I can call you sir? Sir the rest of us are clueless. We see the gas prices rising. We spend $30.00 - $40.00 everytime we fill up the tank of our very very necessary to get where we need to go vehicles. And when it is decided among the powers that be they reverse the cost to slide to a more reseanable few cents a gallon. I am sorry. I wish there was more ordinary people could do about this. There is always a whim or ughh again reason ha ha. The world is running out of oil. ha ha aha ha. The hurricane hits Mexicos oil industry which I will not laugh about because for this it is a true disastor and I am sorry for any hurricane victims whome soever but with the conglomerates who are also effected then too bad. But the simple answere to "Why we consumers end up dealing in futures when filling up at the pump?" Sir we have no idea what your question means except the Oil Corp oration excutives are ripping us off and we know this but we really are powerless as a go to,,, get there at any expense society that we are. Everybody has a boss in every job. But the Oil Companys have only God above them. Anybody who thinks congress is with us on our gas price issues is mistaken so bad. Someone thinks of his rep in the legislature as his personal rep? Guess again he represents business. You are the least of his concern. Not you sir. I'm sure someone will hear your reason and answere your question. But for me it is simple to know the gas prices need controls and guidelines so I can at last see that there is authority which now at this time is absent. Thankyou for your question sir.
3. Very good question and one that I personally have wonder. All I can add is that this is Capitalistic greed at work. The fat cat oil pigs know that they have us by the short hairs and know we can't work or get around without gas so we are all at their mercy (for which they have none).