Here come higher gas prices

A friend sent me the following article on the climbing price of gas in the U.S. Yes, I know that Americans are blessed with relatively cheap gas prices, especially considering the amount that Europeans pay. (Check out the prices and the conversion to US Dollars at the homepage of Gasoline Watch.) But Americans do like to complain, sometimes loudly, about price inflation so I thought I’d share this story.

While my car isn’t the most economical when it comes to gas, I’m glad I don’t drive a huge truck or SUV.

From the Dow Jones Newswires:

Get Ready For Record Gasoline Prices

Buckle up for a rough ride.

U.S. retail gasoline prices could top last summer’s record high average of $2.37 by 11% to as much as 34%, if historical trading patterns hold.

The first-quarter national average price for retail regular gasoline was $2.34 a gallon, according to the federal Energy Information Administration. That’s the highest non-inflation adjusted price ever for the first quarter, and up nearly 21%
from a year ago.

In the peak demand spring-summer driving season prices typically post hefty gains from first-quarter levels. In the past five years, gasoline pump prices rose by an average of near 12% from their first-quarter level. A similar move this year
would put second-quarter prices at $2.611, a gallon, the highest for any quarter, topping the near $2.56 quarterly average of the 2005 third quarter. In that quarter, Hurricanes Katrina and Rita sent prices soaring to record-high weekly level of $3.069 a gallon.

If the second-quarter rise matched last year’s near 13%, prices would average $2.637, up nearly 21% from a year ago and 4%, or 10 cents a gallon, over EIA’s projection.

In this scenario, when peak demand season comes, in the July-September third-quarter, retail prices would be nearly 14% higher than their first-quarter levels, a review of EIA data shows. Applying that average performance over the past five
years, retail gasoline would average over $2.66 a gallon over the entire third quarter.

Perhaps I should go out and buy a hybrid.

Via Dow Jones Tomorrow’s News Today

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