Gas Nearing $4/Gallon Nationwide
According to GasBuddy.com, the average cost of a gallon of gasoline in the United States is currently $3.788.
This is up from $3.704 in the past week, $3.531 in the past month and $2.864 in the past year.
Back in the summer of 2008, the average cost of a gallon of gasoline in the United States rose to an all-time high of approximately $4.12. It should be noted that the current price of gas ($3.788) is substantially higher than it was in mid-April of 2008 (approximately $3.50). This has led some to proclaim that gasoline has a chance of reaching $5/gallon in the United States by this summer.
Gas has already surged past the $4/gallon mark in many parts of the country. Illinois, Washington DC, Alaska, California and Hawaii are already paying more than $4/gallon on average, with Michigan, New York, Indiana and Connecticut all well north of the $3.90/gallon mark.
These major cities are all paying more than $4/gallon for gas as of this moment:
New York - $4.01
Sacramento - $4.121
San Diego - $4.159
Los Angeles - $4.187
San Francisco - $4.216
Honolulu - $4.37
Tucson ($3.501) and Denver ($3.52) have some of the lowest costs in the nation, but they are both still paying over $3.50 for a gallon of gas.
So what are the chances of actually seeing $5/gallon gasoline in the United States this summer?
According to some analysts, the odds are pretty high, especially if the unrest in the Middle East spreads to Saudi Arabia.
Earlier this week, Goldman Sachs' analysts predicted that oil would experience a "substantial pullback" over the next few months, but other analysts aren't so sure. Bank of America Merrill Lynch released a research note this morning in which they said that there was a 30% chance of Brent crude reaching $160 a barrel this year. If that happened, then the price of gasoline would rise as well, especially during the summer driving season in the United States.
At what point will people start adjusting in order to cope with higher gas prices? It's already happening.
Many people are turning in their trucks and SUVs and switching to motorcycles, mopeds and smaller vehicles.
In addition, many people are also turning to car pools and public transportation in an effort to minimize the impact of rapidly increasing gasoline prices on their wallets and purses.
Given where gas prices are currently at, it seems as though there is a pretty good chance that we will see $5 gasoline throughout some portions of the country by the summer.
Filed under: General Knowledge