Why is gas so expensive?

Because demand is up and supply is down, according to Charles Krauthammer. Imagine that!

Damian P.

Update: Andrew Sullivan's on fire:

...these high gas prices are an obvious function of demand and supply, and, as such, they are one of the best things to happen in a long time. I hope they go much higher. Soon. If they don't, the government should force them higher with a big fat gas tax. Only higher oil prices will actually jump-start the new, greener technologies we all say we want (and our planet desperately needs). The government can help a little at the margins: lift ethanol tariffs from Brazil, drill in Alaska, insist on flex-fuel capacity in every American-made car. But for the rest, let the market show people that there are costs to things. ...

[...]

One simple conclusion: conservative government really is dead, isn't it? A conservative government would simply say: we have no control over global oil prices; consumers reap what they sow; companies should be left alone; and if your wallet is empty because of all that gas in your SUV, you've learned a useful lesson in self-government. If only Margaret Thatcher were around to punctuate that lecture with a swipe of her handbag.

Unless you really need a big-ass truck or SUV (and some people really do need them, especially in a place like Newfoundland), either buy something smaller or grin and bear the fact that you're going to pay through the teeth for gasoline when the price of oil goes up. But don't buy a friggin' Land Cruiser and then whine, whine, whine about why the government won't "do something" about gas prices. (If you want an SUV for carrying capacity, how about a "crossover" vehicle like the Chrysler Pacifica or Ford Freestyle?)

Posted by damian at April 28, 2006 07:24 AM