So far that is. Gas prices rose a whopping 8% in Feb., making your gas price pain at the pump increase for 2012 about 14%. On the flip side, prices are still 38 cents lower than our all time high July 17, 2008
As usual it’s the rising price of oil with the kicker of the Iranian threat to shut down the strait of Hormuz.
No excuse to feel sorry for yourself. Europeans pay twice as much for gas, even in locations where they produce their own.
No, it’s not baseball this time. It’s the rising price of gasoline.
And nothing energizes Republicans like rising energy prices. Last week House Speaker John Boehner told Republicans to take advantage of voters’ looming anger over prices at the pump
Let’s get that pipeline moving! And open up more off-shore drilling.
Gas prices are rising for three reasons and non are listed above.
1. Iran’s decision to cut exports to Britain & France (a payback move)
2. Economic recovery is taking longer than expected.
3. Speculators i.e. hedge funds and other money managers placing big bets on the price of oil.
No hints of any steroids
Unleaded gas averages 3.48/gal these days and is likely to be going up.
We all know the refineries have to switch from the winter blend to the more expensive seasonal stuff to meet environmental standards. This tacks on a good 15 cents/gal.
Crude prices have gone down to $98/barrel, but those pesky tensions in the Middle East are heating up again.
Energy analyst Patrick DeHaan of price tracker Gasbuddy.com expects prices to rise to about $3.55 a gallon by the end of February and peak around $4 by Memorial Day weekend.
“You could see prices in Chicago, Los Angeles, New York, Washington and other major metropolitan areas at $4.60 or higher,” DeHaan says. “There’s definitely a limit how much it can go up. But the overall trend does remain higher.”
And so apparently is $4 gas. Fred Rozell of OPIS sees $4-$4.25 gas sometime between April and early May. Patrick DeHaan of gasbuddy.com predicts $3.75 to $4.15 by May.
Look out Chicago! DeHaan predicts $4.60-$4.95/gal. LA: mid-to-upper $4.00.
“Bigger cities will always have higher prices due to higher gas taxes and the cost of doing business,” DeHaan said.
Could be worse.
Despite the possibility of record high gas prices this spring, Rozell says things could be worse. “Over the last 10 years, we have tended to see a 75% increase in prices from the winter low to the spring peak. This year, we are only forecasting about a 40% rise because of bearish economic news.”
Overall consumer prices were down .1 percent last month. Not much I know, but it’s the first time since June they declined.
A big drop in gas prices led the way. Food prices up, but at the slowest pace of the year. New car prices – down. Hotels & airfare – down.
Oil prices are up over $100/barrel today, but experts note that the price is still cheaper than it was in the Spring. No real inflation worries there.