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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.