eli5: why the current price of gas is much higher than in 2008 when the price of brent barrel was quite higher?

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eli5: why the current price of gas is much higher than in 2008 when the price of brent barrel was quite higher?

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because the oil companies are making record profits right now.

(and depending on where you live taxes might have increased a bit as well).

If oil companies expect the price of oil to go up, the price will immediately go up so they can pay for the higher price in the future.

Efficient Market principle. The commodity markets and stock market are priced based on net present value, not simply “today’s value.” The market has priced in an expected shortage of oil, and therefore also a respective increase in future price. Even if said shortage hasn’t actually occurred yet, prices have already adjusted to account for the publicly available information about the future.

Inflation means many other costs in fuel production are higher now than in 2008. So the total cost to the pump is going to be net higher even if the oil per barrel cost is lower.

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Also greed.

In a nutshell, oil companies know they can get away with it. What are we going to do? Not buy gas? This is not political, gas prices are up all over the world. America is still lucky though, we have (on average) the lowest gas prices anywhere in the world. Most countries are paying over $10USD per gallon.