With the Memorial Day holiday still about three weeks away, national gas prices have surged to a record nationwide average of $3.07 per gallon. And we thought it was bad in 2006? Not so, it appears. That new record is almost $0.20 higher than two weeks ago, and the former record of $3.03 per gallon set in August of 2006 is now a distant memory.

So, are you ready to fuel up that full-size SUV and drive a few thousand miles for a vacation soon? Perhaps not -- it may be cheaper to fly to some destinations. Regardless, possible concerns over the inventory of refined gas and oil are driving prices of "at-the-pump" gas through the roof once again, but are we near the peak yet? Can gas prices go any higher? Some industry analysts think the peak may be near -- but then, will prices level off from the peak?

What happened? Recent increases have their roots in refinery problems, like a BP (NYSE: BP) plant that is not up to full capacity production due to unexpected repairs. When inventory fears run their course and refinery problems dissolve as much as possible, will gas prices decline or stay near the peak of where they are now? Hard to say, but until then, be cautious with all the driving or your pocketbook won't know what hit it.