Gasoline futures closed at $2.2851 a gallon on Wednesday. That's a gain of 21% since February. The price of gasoline futures is the price at wholesale. Retailers can up the price to whatever the traffic will bear.
Right now gasoline at retail is about $3 per gallon. Retail gasoline, which closely follows crude oil prices, is up 5.5% over the past three weeks and 42% higher than a year ago.
In July of 2008, before the financial crisis hit the fan, gasoline was $4.11 per gallon. Then as unemployment rose, demand fell off and so did the price of gas. Now with the economy tipping up a bit, the price is rising again.
That's not the end of it. We have the summer driving season on the way. More drivers are on the road and the price is likely to go up over $3.00 to maybe $3.50 per gallon. Right now, at present prices, consumers are spending a whopping $1 billion dollars per day on gas.
Do you believe that we will see $3.50 gas by this summer?