10:48 AM CDT on Wednesday, April 26, 2006

By SHELTON GREEN / KVUE News

Outrage from drivers continues to grow as companies make huge profits from soaring gas prices.

First-quarter earnings released Tuesday by the country's largest oil suppliers shows the industry is on track for another record-breaking year of profits.

Many Austin consumers believe it has to do with price gouging, but is that true?

According an energy expert at the University of Texas, the high prices we're now paying at the pump are a direct result of things happening thousands of miles away from Austin.

Ehud Ronn, UT's Director of Finance says increasing fuel demand from booming economies in China and India are the main reasons gas prices are reaching record highs. Instability in the Middle East has also raised crude oil prices

"We're paying more at the pump because of demand issues and supply issues," Ronn said. "We have this concern about whether or not the issue of Iran and its nuclear capabilities will be settled peacefully or not and markets are concerned about that."

In 2005, 250 of the world's top oil companies made a profit of $2.3 trillion, a 35-percent increase from the year before.

"I don't think the oil companies are any less greedy than they were last year." Ronn also said gas prices and profits will just keep going up until China's economy slows down or stability is finally established in the Middle East. Until then, creativity is the key for Americans trying to save money.

"One thing my company has done is they've allowed a flex-schedule now," said Tony Puglisi, an Austin driver. "Starting next week we can work four 10-hour days instead of five eight-hour days. That helps, you know?

Ronn also warned that even with stability around the world, we may never see $1.50 per gallon of gas ever again.