How high will our gas prices go?

We all know about the law of supply and demand. When anything people want is much in demand, prices tend to rise, at least until there is a greater supply.

Well, as American motorists are demanding more gasoline supply, with spring and summer driving at hand, gas prices are rising.

But one other big price factor is trouble in the North African country of Libya, which is essentially in a state of civil war.

Libyan oil is refined to supply Europe a good bit of its gasoline. But as Libya's oil flow is disrupted by strife, that reduces supply and raises prices in Europe. That indirectly affects prices - and thus consumers - in the United States and throughout the world.

The cost of gas in the United States has risen by nearly a dollar a gallon from one year ago. The wholesale price of gas has jumped 38 cents just since Libya's violence began in mid-February.

We produce much oil and gasoline in the United States, but we put much of our oil off limits, too. So, we remain heavily dependent on foreign oil, and disruptions "there" raise prices "here."

Now we are being painfully reminded again, as we fill up our tanks and watch the price meters rise.

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