Friday, 10th February, 2012
If you're waiting for the sting of high gas prices to go away soon, you may be in for one hell of a long wait. Gas prices are back at a national average of $3.48 a gallon -- a whole 36 cents more than the average during February of last year -- and are set to climb an entire 60 cents or more by May.
Tom Kloza of the Oil Price Information service expects prices to top out at $4.05 a gallon, although some markets could see prices go even further beyond that. "I think it's going to be a chaotic spring, with huge price increases in some places," said Kloza.
Of course, gas prices do tend to rise somewhat going into the warmer months because of increased demand. Refiners also switch to seasonal formulas which can tack on an extra 15 cents a gallon according to Brian Milne of Televent DTN, an energy tracking service.
It's been about five years since we last witnessed national average prices reach these levels. In 2008, average prices climbed to a record-setting $4.11 a gallon. We came dangerously close to toppling that record last April with the national average going up to $3.98, but prices starting dropping soon thereafter.
With the current economic climate in the U.S. unstable, we can't help but to wonder what effects these near record prices will ultimately bare.
Source: USA Today