The high and rising gas prices are altering summer plans like nothing else. If you ask an average American about whats bothering him the most, it may or may not be Iraq and Hillary’s annoying laugh (now that she is no more in the race this issue would recede), but definitely the sky high gas prices and which show no sign of stopping.
Fareed Zakaria, the Indian born oracle with an impish grin, he is also the editor or Newsweek International and also hosts a show on CNN tries to answer some of these most vexing questions.
According to FZ, the basic reason is high and rising demand. This is what makes the high prices we face today different from previous episodes of high price.
In the past, prices rose because of restricted supply; OPEC basically slowed production to jack up prices. This time, it is rising demand, because of American gas guzzlers, but also China and India.
