Does government play a role in gas prices?

Historically, oil prices have only exceeded their peacetime price band due to military conflict in the Middle East.

 

Not much of a role. Eliminating domestic production would certainly be a factor in price. The U.S. is the third largest oil producing country in the world now. I know President Obama said it wasn't so but he lies. I would have thought he could have read the CIA factbook.
http://en.wikipedia.org/wiki/List_of_countries_by_oil_production

Then there's the cost of trucking oil when the President refuses to build a pipeline.

And don't forget the cost or regulations.

And don't forget the cost of the government failing to insprect.

Of course, when our government has a stated goal of raising gas prices, it does make you wonder.

Of course, the government has a role. Once they've screwed the market, can they fix it in a week? Hell, no. Obviously, the government just doesn't have much of a role at all.

 

Our federal public sector has provided much public sector intervention to cause oil prices rise; historically.

 

Of course it does! It's the biggest reason for the reason prices are where they are now.

1. Environmental regulations limiting the ability to drill, which keeps the supply low. Big Oil loves these regulations because it massively eliminates potential competition. Limits supply, increasing reliance on foreign oil price gouging.
2. Federal Taxes
3. State and Local Taxes
4. Inflation caused by government spending and the Fed monetizing debt.

 

The question now is how to end things like this.

 

Yes, 100%

I do not think gas prices really rise though.

The issue, is that the US keeps printing money, creating inflation.

This creates the illusion of raised gas prices.

It is my belief, that if we all used real currency, like gold, the price of a gallon of gas today, would cost the same amount of gold, that it costed 15 years ago.

Gas prices are the first place where you see inflation, because oil is imported.

You dont see inflation at McDonnalds for example, because they pay their employees with the same worthless money you use to buy a cheeseburger.

 

You forgot to mention military conflict in the Middle East instead of more permanent and cost effective solutions by our elected representatives.

 

The US government plays no roll in gas prices. Fact is; USA uses 10% less oil each month. That means that someone is going to pay for the 10% decline in refined oil sales. You dig.

The oil monopoloies can blame all the crap they want, but the fact remains: when you sell 10% less each month, you need to make back that profit to stay in the red. With corporate competition between oil/gas corporations, they will not shut down production/refinment facilities, and will not tap into the shareholders pinch. they are going to raise prices at the pump, because that is where the masses can take the pinch.

There is no way a oil corporation can suck up $250million+ loss every month by closing factories and stop drilling platforms. These mega corporations make a profit on expansion not reduction. If they reduce in size they will be eaten up by forigen oil corporations.

Also, take into account the US oil producers are selling oil to other countries for profit too. As they need to, to stay competitive.

You can bet that prices at the pump will continue to clime to over $5.80 a gallon by summer next year.
Why, because with the current high prices, Americans will be using even less fuel in the months to come.

Go ahead, just listen to the traffic outside of your home in the evenings. You will here less cars and trucks on the road.

 

Historically, military conflict in the Middle East, is what has caused the price of oil to exceed its usual and customary peace time price range. Our exportation of democracy product without including States' rights is merely a public sector means of production which does not provide for the common defense and general welfare of the United States.

But, it seems the Army doesn't teach the difference between the common defense and the common offense, anymore.