With the recent surge in oil prices, it should come as no surprise that we are getting hit hard at the gas pumps, and according to AAA, prices moved to a new record high last night of $3.303 for a gallon of regular unleaded.This is the second day in a row that gas prices have set new highs, after jumping more than a penny overnight. At these current levels, prices are now a massive 22% higher than they were this time last year.
Congress has been trying to get to the bottom of the situation, and earlier this week they heard testimony from executives of 5 of the world's largest oil companies regarding the current price explosion. Some analysts are predicting that Congress may have to step in to take some action to help combat the record-high prices by making the purchase of high-risk oil contracts tougher to do, which could lead to lower prices. Whether or not that takes place remains to be seen.
Oil companies are defending the current run up in prices, blaming it totally on the recent record high oil prices. Currently oil is trading at slightly above the $105 mark. A little lower than the $110 oil we saw last month, but not enough lower to really impact the future of gas prices.
The hardest hit states are, as usual, California and Hawaii. California drivers can expect to pay on average $3.679 for their gasoline, and Hawaii residents are also facing prices above the $3.60 mark. So where is the cheap gas? Well, if you consider $3.046 a gallon cheap, then that honor goes to resident of New Jersey, which is the only state in the country to show gasoline prices below the $3.10 mark.
For those of you driving diesel powered cars, your gas bill is even more extreme, with the average price of a gallon of diesel running at $4.023.
I wish I could predict that prices would be retreating in the months to come, but I cannot. With the high-demand summer driving months right around the corner, it is not looking as though we will see much relief over the next few months. So, if you are planning on doing any heavy driving this summer, you may want to start saving now, because barring any sort of miracle, these high prices are here to stay.
What are you seeing in your area? I am always curious to hear from our readers regarding prices in their neck of the woods. Let us know where you are from, and what prices you are seeing at your local gas stations.
Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.
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Reader Comments (Page 1 of 1)
4-04-2008 @ 10:55AM
Michael Schneider said...
Gas stations I used to fill up at because their prices were a little lower than others have closed-- maybe bad locations had them offering lower prices a bit.
The problem seems to be refinery utilization which has not been up to par and has been worse than expected for the last couple of weeks (See for oil inventories and some comments see Oil Alerts- light blue label, left side) at http://www.Barrelomoney.com. Gasoline demand which had shown declines the past couple of weeks actually rose in the latest week by 1% according to Investors Business Daily. I have been arguing that the declines in demand were at least partly due to bad weather and bad roads more than prices-- the next few weeks should tell the tale.
4-06-2008 @ 2:34AM
Petkov said...
Liars. California is playing 4.50 and in some places its over 5 dollars a gallon.
And as usual the Congress is right on top of things, trying to get to the bottom of the situation while last year the oil companies reported record profits.
Well, why should Americans pay cheap prices while the rest of the world is paying though its nose? It's about time Americans start paying real prices. Welcome to the Real world, Americans.
4-04-2008 @ 11:23AM
John said...
Prices are high; that's great for me.
ExxonMobil's up. That's me. Be happy for me. I'm an American; I'm part of the economy. I'm doin' fine.
4-04-2008 @ 2:49PM
Melisa said...
I live in Columbia, MO and I am paying $3.30 for a gallon of gas. I think the President needs to wake up and Congress needs to look at the bigger picture. With the economy the way it is, we are going to have to start rationing everything, just like when the Great Depression hit. I am an American, but I am saddened by the way America is today.
4-04-2008 @ 4:06PM
m1ch3l1n said...
no more oil's president and vice. I hope americans learn about bush's team.