$5 a Gallon Gas Coming Soon?

2012’s Record High Gas Prices

Gasoline For $5 a Gallon? The possibility is quite plausible.

Gas prices have never been higher this time of the year in the U.S.

Gas prices increased 13¢ per gallon in the past week, and increased 29 cents in the last month. That means gas prices are rising 1- 2¢ per day.

The national average retail price for a gallon of regular gas is averaging $4.32 in California and $3.73 a gallon nationally on Wednesday, according to the AAA Fuel Gauge Report.

Gas prices keep going higher and higher, how high they are going to go is just about anyone’s guess.

Tom Kloza, a conservative analyst with the Oil Price Information Service, said, “You may indeed have to pay $5 (per gallon) if you buy your summer gasoline in places like Martha’s Vineyard, or one of the tonier suburbs of New York, San Francisco, or Los Angeles,” Kloza wrote last week on his blog.

With no clear end to tensions with Iran and Syria and rising demand from countries like China, gas prices are already at record highs for the winter months.

As summer approaches, demand for gasoline rises, typically pushing prices up around 20 cents a gallon.

The NY Times reported gas prices could rise another 50 cents a gallon or more, analysts say, if the diplomatic and economic standoff over Iran’s nuclear ambitions escalates into military conflict or there is some other major supply disruption.

“If we get some kind of explosion — like an Israeli attack or some local Iranian revolutionary guard decides to take matters in his own hands and attacks a tanker — than we’d see oil prices push up 20 to 25 percent higher and another 50 cents a gallon at the pump,” said Michael C. Lynch, president of Strategic Energy and Economic Research.

Today’s record-high gas prices are having a real impact on millions of families and businesses who rely heavily on their cars.

Average gas prices already top $4 a gallon in three states (Alaska, California, Hawaii), and in Washington, D.C., and four other states (Oregon, Washington, New York, Connecticut), the average price for a gallon of regular is now at least $3.95.

For the typical driver who pumps 60 gallons a month of regular unleaded gasoline, a 50-cent increase in price means an extra expense of $30 a month.

With Gas Prices About to Hit $5, Can You Afford Not to Use GPS Tracking?

If your family or your business has been affected by this year’s rising gas prices, then you may want to consider purchasing a GPS tracking system.

Using a fleet GPS tracking system can help the average driver reduce fuel costs up to 20%. It is one of the most cost effective means to manage and reduce fuel consumption.

A fleet GPS tracking system like FieldLogix can provide an ROI in less than six months and immediately reduce fuel consumption.

 

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Categories: Gas Prices