RAM(Random Access Mem) Prices up. . !

It all started with my computer creating lot of problem without a proper antivirus.
Somehow my system got loaded with plenty of virus in windows(so using linux now).. I wanted to reinstall windows and so thought of increasing my RAM( presently 128 + 128 MB = 256 MB, which is now an antique.).  A month back i got a 1GB ram for my frnd and it cost 1400( Transcend). Suddenly the prices increased to Rs.1950+ .. And some other brand rose to 1750.. The whole point of writing this post is that i need to know who actually fixes these prices.. ? Any idea. do let me know.. Im absolutely confused over this issue.
Few questions that arouse in my mind :
1. Is government increasing the tax ?
2. Are the shop owners joining together and fixing a price ?
3. The old RAMs work with the same speed as the new ones.. whats different here ?
4. Finally.. Why are they screwing my head, when im really in need of one. !!

If you cud help me out here, plz answer these questions.
i would wait for ur comments before purchasing. So do comment soon, cause my system is getting eaten up..