The cost of gasoline has once again risen to new record highs this weekend, as the cost for a gallon of gasoline jumped another 0.8 cents to a national average of $3.365 a gallon.
At current levels, consumers are spending 54 cents a gallon more for their gasoline they were this time last year, marking a 19% one year jump in gasoline prices. And for those of you that are hoping to get some relief from the current prices ... don't hold your breath. According to AAA, you should only be expecting to see prices continue to move higher.
One of the main reasons why prices should continue to move to the upside is that we are just now about to enter into the high demand summer driving months. Industry experts have already estimated that prices will continue to move higher, inching their way up to $3.60 a gallon, but there are plenty of analysts out there who are under the impression that we could see prices move even higher, possibly up toward $4 a gallon.
Another big factor at play here is the weak U.S. dollar. As the dollar has been falling through most of 2008, this has led to rising oil and gasoline prices. If the dollar can start to build some momentum, this will definitely help ease prices, but it is unlikely to see too much of a rebound over the next few months as recession fears continue to persist on Wall Street, fueled by a recent jump in unemployment, record high foreclosure rates, and most recently a couple of disappointing earnings announcements to kick off the current earnings season.
One thing that will help ease prices would be if Americans demand less gasoline this summer. Will that happen? It is tough to tell at this point if the high prices will impact summer travel plans. Regardless, we should definitely be bracing ourselves for at least another couple of months of rising gasoline prices.
How will the current gas prices effect your summer plans? Will you plan to cut back on your consumption or will you plan to go ahead with your plans as normal?
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)
4-13-2008 @ 12:23PM
Sheldon L said...
It has passed $4 in many places in California.
4-13-2008 @ 12:30PM
ed said...
when are you sheeple going to complain about gas prices?
4-13-2008 @ 1:06PM
Dan Barnett said...
In the Washington DC area the Petroleum Institute is running radio ads claiming the high price of oil is at fault. Suspicious minds would point out that the major Oil Companies are making record profits.
4-13-2008 @ 1:31PM
Wayne Ferguson said...
Come on people use your heads, (1) Oil companies are making big profits, (2) Government taxing from 30-60 cents a gallon or more, (3) Gas stations changing the price from day to day with the tanks full to match rising prices. Our Government controls 90 percent of these functions, due to our jobs leaving, and the dollar falling in value.
4-13-2008 @ 2:03PM
guardianangelcah said...
If people really want to make a difference in these high oil prices they would stage a boycott of fuel. Just a few days of consumers not filling up and it would begin to make an impact on the Big companies and the lining of their pockets, plus it would be a huge environmental step in the right direction. No one really thinks about the bigger picture of how our uncontrolled use of oil is destroying our natural resources as well, but it's time to get concerned about the "bigger picture"
4-13-2008 @ 2:53PM
CLEATON CANTRELL said...
If you look at the facts it is the rich that are on welfare, Billions of our tax dollars to oil company's, 80% Of the food subsides go to corporate farmers instead of going to the poor, Billions of our tax dollars to the big farm corporations, they spend Billions lobbying our law makers in order to corrupt the system in there favor, It is a moral imperative to fight the enemy's with in our Country !
4-13-2008 @ 6:33PM
william lindblad said...
Talk is cheap. I lived through the oil embargo, but that was an entire different story. This time it is not because the tankers are sitting anchored off shore and a deliberate shortage created. Unforuantely, the world has changed and countries that had little demand in the 70's now have emerging economies and big demand. We could boycott for as long as we like but it will not put much of dent into world demand - ergo, it would not have an impact.
The best advice that I could give anyone is to make sure that you are driving something that is relatively fuel efficient, keep your tire pressure at 32lbs, learn to drive in an efficient manner and you will decrease your usage and save a few bucks. Point - the MPG that you will get with anything, even a big suv,is going to be greater at 55 than 75. This difference can be large, depending on vehicle. I can get 24 town and 37 highway - out of a full sized Chevy. (small six)
4-13-2008 @ 11:27PM
April said...
Everyone always says boycott the fuel, but they know that's not going to work, you'll eventually have to go back to buying it again. I read an article on line that said to stop buying from the big companies, if they aren't making anything they'll have to lower their prices and continue to stop buying gas from them until they keep prices reasonable.