Why are gas prices rising?
For the past 20 years, the United States has benefitted from declining energy prices. With cheaper gasoline readily available, Americans renewed their enthusiasm for larger, less fuel efficient vehicles. Consequently, today the fuel economy of the vehicle fleet is the lowest in 20 years. Refiners have made business decisions not to build new refineries in the U.S. Instead, demand was met over the past 20 years by expanding capacity of existing refineries. As refineries reach maximum capacity, refiners and marketers often choose to import gasoline and other refined products. Today, Americans now confront a situation where supply and demand are in a delicate balance. The following major factors contribute to rising fuel prices: During the summer of 2004, worldwide crude oil prices have been at their highest level in more than 20 years. Excluding taxes, crude oil costs are the single largest component of gasoline costs and gasoline prices reflect those costs. Crude oil costs account for n
