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Although there are many different things which contribute to high gasoline prices, the biggest reason for an increase in gasoline prices has to do with refining capacity. Even if oil were super cheap, we would still have a problem converting that oil into gasoline that fuels our economy which would keep gas prices high. When gasoline supplies are low due to an inability to refine oil into gasoline, prices increase. This is all part of supply and demand economics and it works well in that high prices curtail usage. If gas remained cheap despite how much was available, we may find gas stations hanging “out of fuel” signs on their pumps because consumers wouldn’t cut back on consumption. So high gas prices do serve a purpose; they deter consumption so that we don’t completely run out of fuel. But how high is too high? Is there such a thing? Is the refining industry artificially inflating gas prices by reducing their refining capacities so as to improve profit margins?

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