Did they give a reason to the increase or is it just to gouge the customers?

They are raising the prices because they can.

its so expensive to be green ^-^;;

There is never a good solid and valid reason for big companies to raise prices.

What do you mean there is never a solid reason? Hybrids are flying off the 'shelves'. They are raising money because they will make $500 more per car, and sell the same amount (sell out like they have been). That is the best business reason to do it. It's all about profits, legally, Toyota has to do everything it can to maximize profits for its shareholders.

Simple business economics: "Supply and Demand"

Awesome! Good for toyota, at least they provide a product that puts money back into the consumers hands, unlike our American Automakers who have sold their soul to the Oil barons and now look at 'em...They should have seen the writing on the wall 30 years ago, karma is a bitch!

Perhaps Toyota is faced with the same increases in energy costs that we have - or maybe they need to raise funds to give their employees a pay raise. Heck, maybe they are planning on investing in another plant due to increased demand, and thus need to raise capital.

At the low end model this is only about a 2.25% increase, which sounds more like an adjustment for inflation.

(Of course, I opted for a $13k corolla that gets about 35mpg - If I'm gonna spend $25k to $40k on a vehicle its gonna at least be a plug-in hybrid!)

I don't appreciate stories like this because the reporter does not state how much non-hybrid model prices will fluctuate. It is common practice to raise prices year over year for vehicles anyway and $500 is not that outrages. Smells like a red herring to me.

The U.S. government should charge Toyota an extra windfall profit tax. Oh, wait, that's just for oil companies that make money. Carry on.