What is the true reason why Gas prices are going sky high?”
Ultimately, gas prices are high because of increased demand. Americans have a car-addicted culture, and now other countries are starting to try to match us. Countries like India and China are increasingly wealthy with economies fueled by what had been a very high dollar leading to a trade deficit that keeps getting larger. They want more cars, increasing the demand for oil worldwide. There are a million other factors going into gas prices: the difficulty of finding new oil reserves, the expense of getting to them (even if the oil is out there, we’ve tapped the easy stuff), control by OPEC (including Hugo Chavez of Venezuela, not exactly a friend to Americans, though his crummy understanding of economics is hurting him more than it hurts us), the price of oil refinery infrastructure, political instability in Iraq, sanctions on Iran, etc etc etc. The prices are further complicated by speculators, who bid up the price of oil because they expect it to go up even further. That’s one way in
