Gas stations will tell you that it is because the petrol in their tanks was purchased when it cost more. But then you ask, "why did the price jump up as soon as the oil prices went up then?" and the answer is simply supply and demand, they can get away with charging heaps because of the small cuts they put in place to keep people happy, I mean hell people arn't happy unless they have something to complain about, right?

G R E E D .

1) Oil is not the same as gas. Or why don't we just buy gas? There is some necessary processing in the middle, with people doing it, using equipment. It must also come from the field to the gas station. All this must be paid, and it takes time. Notice also that some oil painting are still very expensive. ;-) Of course, some people are always trying to make money... 2) "The usage and pricing of gasoline (petrol) results from factors as crude oil prices, processing and distribution costs, local demand, the strength of local currencies, and the availability of local sources of gasoline (supply). Since fuels are traded worldwide the trade prices are similar, the price paid by consumers largely reflects national pricing policy: some regions, such as Europe and Japan, impose high taxes on gasoline; others, such as Saudi Arabia and Venezuela, subsidise the cost." "In a June 2008 OP-ED article responding to US Congressional hearings on the practice of oil speculators, Jon Birger wrote that oil "speculators" are not raising the price of oil. He attributes the current oil prices to actions of Congress." Source and further information: http://en.wikipedia.org/wiki/Gasoline_usage_and_pricing Further information: http://en.wikipedia.org/wiki/Price_of_petroleum

India and China...

Because we will pay for it at these prices. There is no such thing as "right or wrong" in gas prices, there is only 'supply and demand.' If Americans would stick together and not buy gas above a certain price, then gas would fall to that price. But individuals look out for themselves, and people perceive that they 'need' the gas, so they pay.

The reason gas prices are so high right now is because of Hurricanes Ike and Gustav. They shut down the refineries in the Gulf of Mexico, and supply is low right now compared to demand.

i agree with pureawesomes answer that environmental disasters like hurricanes shut down refineries which affect short-term pricing by upsetting the delicate supply/demand balance. but i think the bigger picture answer is why is oil (and consequently gas) so expensive to begin with? i agree with mistje ~ greedy, monopolistic suppliers and their price-fixing ways are primarily to blame, their unscrupulous practices are not unlike the diamond industry. and they know they have a captive audience. their practices are totally condoned by our laissez faire government who kisses middle eastern oil suppliers proverbial butts and supports trickle down economics. i really hate it when they piss on me and tell me its raining. i think the government could do a lot better in regulating oil trading, the volatility and increasing prices are taking its toll on the consumer. lastly, the gas suppliers are also to blame. they get a big slice of the pie in this whole equation. i have friends who boycott only the major gas suppliers ~ ultimately they are the ones who dictate the price of gas at the pumps. but it would take massive numbers of people to make that strategy work. i think the best solution is to put pressure on the government to mandate alternative energy solutions and start making more pro-consumer and less pro-middle eastern business practices. write your congressman!

#1 reason is greed, as mistje said. #2 the last two hurricanes shut down production. #3 the economy and consumer confidence is at an all-time low.