Why are gasoline prices going up?

The Lundberg Survey, which is the bible of crude oil and gas prices nationwide, says the average price per gallon has increased by 8.23 cents in just the last two weeks. The price of a gallon of regular is at $2.77. But the U.S. Energy Information Administration says it should average $2.69 for the second half of 2010. A barrel of crude is also expected to average $77 in the 4th quarter. So what’s the culprit in gas prices?

Crude makes up over 50% of its cost, followed by taxes, refining, then distribution and marketing. And there’s also the age-old arbitrator, supply and demand, which is based entirely on the whims of the American driving public. Another factor—and one that has been challenged recently—is speculators, thought to have been responsible for the last big increase. One source reports that for every gallon the average barrel of crude goes up, gas will follow for around 2.4 cents.

Hybrid cars…here we come.

Read more here and here.