Oil and Gas (companies, money, government, spend)

[whitegiant]

Everyone how come oil companies raise gas prices when the goverment wants us to go out and spend our money in the summer time. The goverment complains that we dont go out and spend money on vacations or just in general but when they raise prices so high that no one can afford to go out how can they blaim us. Just because there is more people going out in the summer dont mean that you have to raise prices if you kept them lower more people could probably afford to go out and spend more.

[Dd714]

I don't understand your question. The government does not regulate gas and oil prices (except for tax). They can influence it, but not regulate and set it. Is that what you are asking the government to do?

Price of oil is set by supply and demand, basically (although I don't want to get into the oil speculators and refinement and OPEC influences since that isn't your topic). The reason it is higher in the summer time is because, as you said, more people are traveling and getting out.

[jimboburnsy]

Also, the price of gasoline is set by supply and demand somewhat independently of the price of oil. The two are interelated in many ways, but still distinct. This is why we were seeing inelasticity between oil and gasoline earlier this year.