Gas prices are touching the sky with crude oil prices hovering constantly around $140 per barrel since the recession. The worst situation being that the gas prices are showing absolutely no signs of reducing much to the distress of the consumers who are always at the receiving end of a price rise.

Politicians are blaming the oil companies for the price rise while the oil companies are blaming the politicians for the price rise. Hoarding of crude oil along with speculations over the political scenario in the Middle East countries have led to the phenomenal increase in gas prices. The government has tried every method in the book to reduce the gas prices from introducing the $100 rebate to relaxing the clean air rules so that the gas production costs are reduced which will be reflected on the prices passed onto the consumer.

The cost of per barrel of crude oil has doubled in last two decades. The gas prices that we as the consumer pay have a series of production and transportation costs as well as refining costs. Hence with the troubled situations in oil supplying countries like Mexico, Gulf countries and Nigeria has escalated the production costs which has been transferred onto the consumers who now pay double for gasoline compared to what they did previously.

Pumping gas will become even more expensive

Global warming has been another major factor in contributing to the rising gas prices. Many environmentalists have banned drilling at major drilling sites either because it harmed the flora and fauna of the area or because the drilling methods did not match the clean air standards required by the location. Hence as reserves are becoming empty other reserves which are still rich in crude oil cannot be drilled because of the damaging effects on the environment.

Many companies are also not willing to switch to the cleaner ethanol because of its high costs. Hence areas like California experience the worst gas price rise due to the distance of the pipelines and stringent fuel requirements.

The weakening dollar has been another contributor to the increasing gas prices. The economic conditions and the falling US dollar have all led to the gas prices sky rocketing. Other natural calamities like storms, floods and hurricanes have also contributed to the rise in gas prices.

Hence reduce your fuel consumption or look for alternatives to cut costs as the economies around the world are speculating another recession much worse than the previous.