Gas Prices Soaring

May 09 2011

Gas Prices Soaring

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Costly gas prices has consistently been an issue that American face on a daily basis. In the past two weeks, the average price for a gallon of gasoline has risen to 11.98 cents. On May 6th, the United States average price for self-serve, regular unleaded gas was $4 per gallon. Fortunately, oil prices decreased last week which industry analysts are saying will signal in lower costs to come.

The all time high cost of gas was in July of 2008 when a gallon of gas was $4.11. According to Trilby Lundberg, the editor for the nationwide “Lundberg Survey,” “If the current oil price stays, gas prices will slide.” To support his assumption that the gas prices are declining, there is evidence that the wholesale market (retailers and commercial buyers) prices are also dropping.

Unfortunately, there is no guarantee that the oil prices will continue to decline. The oil production in Libya has not been re-established which is affecting the U.S. gasoline demand. The highest average of self-serve gas is at $4.50 in Chicago for self-serve, regular unleaded gas. The lowest price of self-serve, regular unleaded gas is in Tucson, Arizona at $3.62 per gallon. The last time gas prices were this high, the economoy collapsed.

“We can’t know what oil prices will do,” said Lundberg. “The main drivers of oil price increases have not gone away.”

Many people are angry because they believe Wall Street speculators are driving up the gas prices in order for them to make more profit. As they are raising the prices, Americans are suffering from the high price.


11 Responses to “Gas Prices Soaring”

  1. crice6 Says:

    I believe, and have for some time, that this is all the more reason to invest in alternative energies now more than ever. Oil has become too entrenched in our society and letting foreign supply dictate something that we spend so much money on can be harmful for future economic well-being. As oil becomes more scarce it will only become that much more expensive. The days on affordable oil are long gone and society needs to start being much more proactive about this issue.

  2. tdeere Says:

    Gas prices will end up higher. It’s just a matter of when. With all the turmoil in the Middle East. I believe Americans should count themselves lucky to only be paying $4 per gallon. I believe this problem will continue until the entire nation adopts alternative fuel. This change will probably only result when prices force us to change, but it’s only a matter of time.

  3. mmonitto Says:

    There’s been oh so much speculation about the rising gas prices that it’s becoming much harder to separate and analyze the fact. You do a good job of it here.

    I’m willing to bet that a good part of the problem is the U.S. demand. What happened to all the people who were going to start riding bikes or taking public transportation or whatnot? How can demand still be this high?

  4. mrousseau Says:

    The raising oil prices is ridiculous. I don’t know what I’ll do if I go home for summer and gas is $4.00 a gallon. High gas prices in a summer really effects people. Many people won’t be able to take as many vacations or day trips to the beach because before we were just worried about parking, but now we also have to worry about the $50 it takes to fill up a tank of gas. Experts are saying that prices are supposed to go down by June, and I hope they’re right. If not, I’m not looking forward to how the American people are going to react by the prices going any higher.

  5. tpewitt Says:

    Hopefully with the oil price decrease last week, the analysts will be right and the prices can continue to go down. It’s scary to think that there is a possibility of them rising even higher than they are now. Thankfully we live in North Carolina and not Chicago because $4.50 is ridiculous. I do not necessarily believe that Wall Street speculators are driving up the prices for personal gain, but if that is true then it needs to be stopped immediately to help out those who are struggling to keep up with the high gas prices.

  6. pmeyer2 Says:

    The price of oil has consistently been and still is far too high in the eyes of the average consumer and even though there has been signs of a slight decrease in price many people are uncertain what will happen in the future. The price of oil is inelastic and therefore it is a commodity where demand is always high and price can usually be manipulated. In other words, I believe that the future of oil prices will still stay rather high and people should be pessimistic in the hope that oil prices will continue to decline.

  7. mrurka Says:

    This just shows how countries rich in natural resources have a significant amount of power over countries such as the United States. In this age of increased globalization, the United States is growing more and more dependent on other countries. This economic dependence largely influences political policy within the United States. This also sucks because I live in Chicago.

  8. jroycroft Says:

    Today I filled up my Civic and it cost $40 to fill my tank, never before have I paid so much. But as I was filling my tank I felt fortunate to be located in a region where gas prices are not as high. I am pretty sure I heard that gas prices in Hawaii are reaching almost $6. Even when I was there in January gas prices were almost $5.

  9. jwolf3 Says:

    prices have been worse, we do have to account for all the conflict in the middle east. Summer of ’08 was brutal… lets hope it doesn’t get back up there.

  10. jouellette3 Says:

    This is bad news for the United States economy. The rise in gas prices will rise the prices of so many other goods other than gas. Think about all the good that need to be transported in the United States, and the amount of gas that it takes for transport trucks to drive them across the country. This rise in gas prices will force truck and transport companies to charge more for their services, which will then cause companies to raise the prices of their goods. Looking towards the future, the United States needs to develop alternative energy sources for transport vehicles if not for the environment primarily for the economy.

  11. mdattilo Says:

    A large issue with oil right now is the volatility of the Middle East at the moment. While the United States refuses to drill oil on our own soil we are very dependent on foreign oil. As the issues in Libya begin to calm down so will the spikes in gas prices.

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