Oil and Gas Prices – How High Will They Go?

Oil prices topped $107 a barrel Friday, April 1, 2011 after a better-than-forecast U.S. jobs report for March, while concerns over anti-government forces in Libya added to uncertainty about oil supplies.  A close around these levels would be the highest since late September 2008.

Gas prices skyrocketed during the entire month of March 2011. The current average for a gallon of unleaded regular gas is $3.61. One month ago, gas prices were at $3.38. Gas prices have risen 23 cents in the last month, according to the AAA Fuel Gauge Report, the  Oil Price Information Service and Wright Express as of April 1, 2011.

This week the website for the AAA Fuel Gauge Report  added the highest ever recorded gas prices in the US to their daily gas price updates. The highest ever recorded average price for a gallon of gas in the US is $4.11. For diesel, the record is $4.84. Both records were set on July 17, 2008.

Highest Recorded Average Price:
Regular Unl. $4.114 7/17/2008
DSL. $4.845 7/17/2008

 

Do you think we will break the record for oil and gas prices this year?

Gasoline prices typically fall in the winter and rise in the spring as refiners switch to more expensive summer blends of gasoline and the demand for travel increases. The Energy Information Administration predicted  that the projected monthly average regular gasoline price will peak at $3.75 per gallon in June. It is early April and we are already nearing this price. Other analysts are predicting gas prices will raise another $.50 by this years’ peak driving season in July.

gps navigation deviceWhen gas prices are rising, investing in a fleet tracking system makes more sense than ever. A GPS-based fleet management system can help your company save time, money and and fuel. A GPS fleet tracking system can significantly reduce fuel expenses. Lower fleet fuel bills equal higher net profits.

For a fleet of 25 vehicles, idling time reduced by only 15 minutes per day can result in fuel savings of 562.5 gallons at a cost of about $2,031 per year at current gas prices. If you reduce idling time by 60 minutes, it would result in a fuel savings of 2,250 gallons at a cost of over $8,123 per year!