CNN reports that gas prices have hit a five-year low after falling for seven straight days. The AAA has the nation's average gas price at $1.630 a gallon. A year ago gas prices were just over the $3 mark and earlier this summer they hit a peak of $4.114 a gallon. The $1.630 average is the lowest we have seen gas prices since February 18, 2004 when they were $1.63.
Today, the AAA has gas prices down again to $1.627 which is even lower than the Feb. 18, 2004 number. You can find the AAA's Fuel Gauge Report here.
Consumers only recently got used to seeing the $3 mark at the pump. This year they have been surprised to see prices breaching the $4 a gallon mark just for regular and some drivers have grudgingly acknowledged that $5 is a possibility in the near future. But what if gas just keeps going up and up and up? What if it hits $12 a gallon and there are severe gas shortages? That's a likely possiblity according to Robert Hirsch, the Senior Energy Advisor for Management Information Services. Hirsch made his frightening prediction on CNBC's Squawk Box.
"[T]he prices that we're paying at the pump today are, I think, going to be 'the good old days,' because others who watch this very closely forecast that we're going to be hitting $12 and $15 per gallon," Hirsch said. "And then, after that, when oil - world oil production goes into decline, we're going to talk about rationing. In other words, not only are we going to be paying high prices and have considerable economic problems, but in addition to that, we're not going to be able to get the fuel when we want it."
Hirsch told the Business & Media Institute the $12-$15 a gallon wasn't his prediction, but that he was citing Charles T. Maxwell, described as the "Dean of Oil Analysts" and the senior energy analyst at Weeden & Co. Still, Hirsch admitted the high price was inevitable in his view.
"I don't attempt to predict oil prices because it's been impossible in the past," Hirsch said in an e-mail. "We're into a new era now, and over the next roughly five years the trend will be up significantly. However, there may be dips and bumps that no one can forecast; I wouldn't be at all surprised. To me the multi-year upswing is inevitable."
At those kind of prices the way the U.S. runs its cities and highways would not be feasible. An alternative fuel would be needed or new means of transporting people to and from work, grocery stores and shopping malls would be needed.
The Associated Press has a clip about how some people are using the web to save money on gas prices. In this case people are using Craigslist to find carpoolers. The AP video suggests you meet in a safe place - you don't want to share a ride with a dangerous person.
The higher gas prices get the more likely thieves are going to try to siphon fuel from buses, cars and trucks. This Associated Press video describes a few incident of fuel theft in Maryland. In addition to losing valuable gasoline a punctured gas tank can also be very dangerous. This article describe a few prevention tips such as buying a locking gas cap.
In the CBS News video below reporter John Blackstone reports from a scenic, remote and expensive gas station in California. The gas is $5.19 a gallon for regular at the Americo gas station in Gorda, California. They won't even list the price on their sign because it is so expensive. The next stop Big Sur is forty miles from Gorda so many drivers have no choice but to fill up.
Reuters reports that gas prices have climbed to nearly $3.20 for a national average. Experts believe gas prices have much higher to climb still with another 20 to 30 cent increase to come in April.
Gasoline prices are rising sharply as refiners, who have kept prices down in order to compete for sales, become more willing to pass on their higher costs of crude oil, according to an industry analyst on Sunday.
The national average for self-serve regular unleaded gas was nearly $3.20 a gallon on March 7, up about 9.44 cents per gallon in the past two weeks, according to the nationwide Lundberg survey of about 7,000 gas stations. The price has risen 64 cents per gallon in the past 12 months.
"The price increase was entirely due to the higher costs of crude oil," said survey editor Trilby Lundberg.
Although the latest price represents a nominal all-time high, when adjusted for inflation it is a smidgen below the record of $3.18 per gallon reached on May 18, 2007, Lundberg said.
Lundberg said things will likely get worse, with prices at the pump rising 20 to 30 cents per gallon in the next month as refiners begin passing on to customers more of their higher costs for crude oil.
With the cost of oil now hitting $107 a barrel it is possible that the national average gas price could eclipse the $4 a gallon mark during the summer driving season.
The AAA's Fuel Guage Report has the nationwide average price at $3.222 - just one half cent short of the all-time record high of 3.227 that was set on May 24, 2007.
Analysts Expect Gas Prices of $3.5 to $4 This Summer
With oil over trading over $100 a barrel many analysts are projecting gas prices to soar to record levels this summer with a peak in May or June. The Associated Pressreports that predictions range from $3.5 to $4 a gallon for the peak national average gas price. That would be a good 25 to 75 cents above last year's record of $3.227 a gallon.
Many analysts believe gas prices will rise this spring to new records near $3.75 or $4 a gallon. But not everyone agrees.
Ritterbusch, for example, thinks the high level of supplies, and an eventual decline in oil prices, will pull pump prices down. He doubts prices will rise as high as $3.75 without a major overseas supply disruption or domestic refinery outage.
But Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service in Wall, N.J., argues that while gasoline prices won't rise as much this spring as they have in previous years, they are starting from a much higher level. Indeed, prices at the moment are 83 cents higher than a year ago. That means retail prices could peak between $3.50 and $3.75 a gallon, Kloza said, well above May's record of $3.227 a gallon.
The Energy Department's latest forecast calls for gas prices to peak near $3.40 a gallon this spring.
Of course, gasoline prices also respond to oil futures. Oil has traded in a band between about $86 and $100 a barrel for months, a trend many analysts expect to continue throughout the year. That will likely keep gas prices oscillating in their own narrow band around $3 a gallon for most of the year.
Any unexpected activity like a bad hurricane season or a disruption in the oil supply would spike gas prices even higher than these already ugly predictions.
The latest Lundberg survey of nationwide gas prices shows prices have shot up 10 cents. The Lundberg survey of 7,000 gas stations reports that the average price of regular gasoline on Friday was $3.07 a gallon, mid-grade was $3.19, and premium was $3.30. San Francisco has the highest prices at $3.39 for regular. Fox Business News says Lundburg the increase is due to higher crude prices and profit margins.
Gas prices may be starting to weigh down U.S. consumers. The gas prices have been hovering at or above $3 for what seems like forever. The problem is gas prices are at $3 now and we are still months away from the peak driving season. CNN reports that consumers are starting to show some real resistance to the high prices but it is unclear whether it is the prices themselves or the weakening economy that is causing the reduced spending.
"With prices over $3 a gallon, there seems to be some real resistance from the consumer," said Michael McNamara, director of research for MasterCard SpendingPulse.
In some weeks demand has fallen by as much as 3 percent.
Although the public has seen $3 gasoline before, 2007 has been different. Where previous price spikes were short-lived, this one seems to be here to stay.
Another reason demand is falling could be due to a slowing economy, or even fears of a recession.
Since topping $3 back in April, gasoline has stayed consistently high, with the nationwide weekly average price never dropping below $2.70 a gallon, according to the Energy Information Administration. For 19 of the last 33 weeks, gasoline has averaged over $3 a gallon.
If gas prices soar as they always do in March, April and May than U.S. consumers could be in for a historically painful experience at the pump. Let's hope somehow the oil prices drop well before that dreaded period begins.
We have launched a gas prices twitter profile which provides gas prices news and trends. Twitter is a microblogging service and communication tool that allows you post short 140 character updates. To get our updates on Twitter you need to join Twitter and then follow our Twitter profile.
Nationwide U.S. gas prices recently broke the record nationwide average gas price of about $3.07 per gallon. Despite breaking the record gas prices have kept on climbing. The chart on the right is a graph from the Fuel Gauge Report. It shows prices soaring right past the old record. Today gas prices are already ten cents above the old record at a nationwide average price of $3.18.
Despite the all-time high gas prices consumers are not letting up on driving primarily because they have little choice. Commuters have not choice but to endure the painful pump prices because they have to get to and from work. Gas prices will likely break the $4 mark in some cities.
And brace yourself: experts say with gas already closing in on $4 a gallon in Chicago and San Francisco ahead of the peak summer driving season, higher prices could be in the cards.
Most Americans are locked into their driving habits and can do little to alter their fuel-buying patterns when prices rise, experts say. For example, the number of workers with commutes lasting longer than 60 minutes grew by almost 50 percent between 1990 and 2000, according to Census Bureau data.
"I drive 55 miles each way to work every day," Sandy Colden, of Medford, N.J., said one recent morning while loading groceries into her Honda Pilot SUV. "So I really don't have a choice, unfortunately."
A Reuters article says today's high gas prices have even matched the "inflation-adjusted peak reached in the early 1980s during the Iran-Iraq war."
Gas prices are likely to climb much higher as we move into the summer driving season. An ABC article has quotes from Phil Flynn, vice president and energy analyst at Alaron Trading. Flynn sees gas going much higher -- possibly even hitting the $4 a gallon mark.
"Things are looking pretty bad for the upcoming summer driving season," said Flynn, citing a new government report showing that the U.S. stockpiles of gasoline fell by 5 million barrels in the past week, much more than analysts were expecting.
Flynn said he believes gasoline prices will head into record territory -currently a nationwide average of $3.07 - by the height of the summer season.
"This is the time of year when we're supposed to be building supplies, but it seems like the refiners just can't get ahead of what has been very, very strong demand," he said.
Today's report shows that the national supply of gas is at the low end of its average range for this time of year, meaning the United States will have less gas in the tank before the peak summer driving season in the coming months.
Iran's release of the soldiers is great short term news but it won't diminish the building pressure on gas prices. Flynn told ABC that, "Everyone asks me, will we see $4 a gallon? And the answer is, there is a strong possibility that we may see $4 a gallon."
Reuters reports that gas prices jumped 31 cents this past month. According to the AAA's Fuel Gauge Report the average national gas price is now $2.48 -- that's about 20 cents higher than this time last year. You can find more gas prices resources here.
The government says motor fuel costs have soared 31 cents over the past month to $2.51 a gallon because of the rise in crude oil prices, which accounts for half the cost of making gasoline. Most of those higher crude prices have been passed on to consumers at the pump.
Pushing up gasoline prices in the weeks ahead will be stronger fuel use as highway travel gets a spring boost.
"Fuel demand increases, that puts upward pressure on prices," said Tancred Lidderdale, an analyst with the U.S. Energy Information Administration, the Energy Department's analytical arm.
Refineries will also switch to less-polluting gasoline required by the government during warmer months, which costs more to make and adds five to seven cents at the pump, according to Lidderdale.
The EIA will revise up its estimate of $2.41 a gallon for the average gasoline price for the second quarter when the agency releases its new monthly forecast on Tuesday, he said.
The gas price jump comes as we enter the spring/summer driving season. Prices typically jump this time of year but they are still way above the prices consumers were used to several years ago. The article also says if the economy is very weak consumers may reduce their driving and spend less money on gas which would keep prices from rising as fast.
Gas prices are starting to climb again and we will soon enter the period between March and May when gas prices tend to really spike. Michigan drivers have also seen prices climbing at the pump. A Detroit Newsstory explaions how drivers in Michigan could soon be seeing those annoying $3 figures at gas station.
Pump prices are more than a dime higher than at this time last year, fueling concerns that Michigan drivers again could soon pay $3 a gallon -- as they have the past two summers.
"Things might stay stable for a week," said AAA spokesman Jim Rink, noting prices are only up 3 cents from a week ago. "But once we get into March, prices will go up and hit a peak in late May."
Rink said it's not a certainty that prices will top three bucks, but the fact they reached that level the past two years shows the market can sustain that price during the summer driving season.
The higher cost to make summer fuel, higher gas demand and speculators -- those who buy and sell oil as an investment -- push pump prices higher during the spring months, Rink said.
The AAA's Fuel Gauge Report shows the national average price for gasoline up about 11 cents over last month.
The Associated Press reports that gas prices are headed back up again after a few months where gas prices have been down about 70 to 80 cents from the highs for the year.
Gas prices are on the rise again, just as Americans hit the highways for Thanksgiving.
Gas prices rose about 5 cents per gallon nationwide compared to two weeks ago, industry analyst Trilby Lundberg said Sunday.
The national average for self-serve regular was $2.23 Nov. 17, according to Lundberg's latest survey of 7,000 gas stations across the country.
The national average for midgrade was $2.34, while premium was $2.44 per gallon.
The AAA's Fuel Gauge Report is showing an uptick of about twelve cents this month. $2.235 for November compared to $2.214 in October.
We have launched a 
Nationwide U.S. gas prices recently broke the record nationwide average gas price of about $3.07 per gallon. Despite breaking the record gas prices 
