Thread: Drivers Face $3.50 Gas This Spring

Drivers Face $3.50 Gas This Spring
MoneyNews
Tuesday, Jan. 8, 2008

WASHINGTON -- U.S. consumers will pay record prices for gasoline this spring, with national monthly pump costs peaking near $3.50 per gallon when the busy driving season begins, the government's top energy forecasting agency said Tuesday.

Higher crude oil prices, which last week topped a record $100 a barrel, are pushing up motor fuel costs, the Energy Information Administration said in its new monthly forecast.

The price of crude oil now accounts for about two-thirds of the cost of making gasoline, according to the Energy Department's analytical arm.

Tight supplies caused by global oil demand growing faster than new oil production is behind higher petroleum costs. And consumers should not expect a break any time soon.

"Global oil markets will likely remain tight through 2008, then ease moderately in 2009," the EIA said. "Both motor gasoline and diesel prices are projected to average over $3 per gallon in 2008 and 2009, with monthly average gasoline prices peaking near $3.50 per gallon this spring."

The national price for gasoline jumped 5.6 cents over the last week alone and now stands at $3.11 a gallon, up 80 cents from a year ago.

High gasoline prices are cutting into consumer spending and raising business expenses, hurting a U.S. economy that is already suffering a slowdown.

The pain at the pump has also become an issue in this year's U.S. presidential election, with both Democratic and Republican candidates telling voters they know family budgets are being pinched and laying out their energy policies to tackle the problem.

U.S. gasoline use during the first half of this year will be higher than a year ago, but rising pump prices will reduce motor fuel demand growth by 20,000 barrels a day in the current quarter and by 10,000 barrels a day in the second quarter, the EIA said.

http://moneynews.newsmax.com/money/arch ... .cfm?s=mne

Moving to Other Topics.

It's not going up in the rest of the world. It's going up here because the dollar is dropping.

$100 fill ups are just around the corner for everyone..

I dont care about gas prices.

I have been abroad and paid $5.00 per gallon.

The sky is NOT falling

Something I noticed in my area-just before Christmas the price started dropping,got as low as 2.93 then all of a sudden last week it shot right up to 3.03 and one station it is at 3.16.

In South West Florida it is 3.27 a gallon of unleaded... the Premium is already at 3.55 and going up slowly

Originally Posted by AirborneSapper7

In South West Florida it is 3.27 a gallon of unleaded... the Premium is already at 3.55 and going up slowly

Thanks AirborneSapper-I know this is kind of steering your post off topic but-can I ask how much milk is in your area-here in northern Virginia it has been at 3.99 per gallon for quite some time (there is ONE grocery that sells it for 3.09)and the other day a nice older gentleman in the store told me in Myrtle Beach it is at 5.99 per gallon There is a paper sign in the store over the milk that says "Due to increased worldwide demand....."
Hope you don't mind my asking -don't get to talk to people all over,my huge family all live within two hours of me.Thanks again Airborne.

Rawhide

Originally Posted by Rawhide

Originally Posted by AirborneSapper7

In South West Florida it is 3.27 a gallon of unleaded... the Premium is already at 3.55 and going up slowly

Thanks AirborneSapper-I know this is kind of steering your post off topic but-can I ask how much milk is in your area-here in northern Virginia it has been at 3.99 per gallon for quite some time (there is ONE grocery that sells it for 3.09)and the other day a nice older gentleman in the store told me in Myrtle Beach it is at 5.99 per gallon There is a paper sign in the store over the milk that says "Due to increased worldwide demand....."
Hope you don't mind my asking -don't get to talk to people all over,my huge family all live within two hours of me.Thanks again Airborne.

Rawhide

If you don't mind me saying, fuel to milk is like apples to oranges in some ways. But in this case the more you pay for fuel the more you pay for milk! And I don't believe there is a shortage of either.

Because Environmentalist leftwing fanatics won't let us do what it takes to be energy indipendant.

The British have decided to start building new nuclear power plants. Of course, the environmentalists are upset again. What don't these people get upset about? I've been working on an idea for a power plant that runs on energy from cremated polar bears and baby seals.

http://news.yahoo.com/s/ap/20080110/ap_ ... ear_energy