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Gas reaches a record $3.50 a gallon
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by Rob Peters | April 21, 2008 at 07:53 pm
847 views | 15 Recommendations | 14 comments
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Gasoline prices surpassed $3.50 a gallon nationwide for the first time and oil jumped to a record on Monday as the long rise of energy prices showed little evidence of giving way to recession fears.
The national average price for regular gasoline is up 22 percent from a year earlier, according to AAA, the automobile club. Some analysts expect it to approach $4 a gallon this summer, when demand is at a peak. Diesel fuel prices reached a record $4.20 a gallon on Monday, on average, compared with $2.93 a gallon a year earlier.
In trading on the New York Mercantile Exchange, crude oil for next-month delivery settled Monday at $117.48 a barrel, up 79 cents, a new high. Oil prices have more than quadrupled in the last five years, and some analysts say that oil will reach $125 a barrel this year.
The latest rise in energy prices was prompted by reports that a Nigerian rebel group had blown up pipelines in the Niger Delta. An earlier attack on a pipeline, last week, forced Royal Dutch Shell to curtail exports by 169,000 barrels a day.
Because there is little spare capacity worldwide and supplies are tight, slight disruptions in oil production anywhere can push up prices.
Gasoline and diesel prices are expected to keep climbing as they trace the path of crude. Oil prices are charging ahead along with a host of commodities that are enticing speculators seeking hedges against a weakening dollar.
Light, sweet crude for May delivery rose to a record $117.76 a barrel on the New York Mercantile Exchange before settling at $117.48, up 79 cents from Friday's close.
Gas jumped more than a nickel over the weekend and is up 23 percent from a year ago. Drivers in New Jersey are paying the least, while drivers in California pay the most, $3.86 a gallon for regular unleaded.
The Energy Department predicted earlier this month that monthly average gasoline price will peak at more than $3.60 per gallon in June and could even reach $4.
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Most RecentMost Recommended Comments (14)
at 22:09 on April 21st, 2008
Rob Peters, I like this story. It's good stuff. The matter of rising gasoline prices is certainly out-of-hand and one to watch!
at 00:54 on April 22nd, 2008
I saw this at Division and Damen in Chicago as I was walking home from the El. I think I'll keep walking.
untitled has contributed a photo to this story.
at 01:28 on April 22nd, 2008
Gas Prices are soaring in North Carolina. I caught this picture as the attendant was finishing his job. This was day Twelve that gas had gone up.
Fire44Photo has contributed a photo to this story.
at 02:33 on April 22nd, 2008
The traveling public could face a bumpy ride ahead.
DeHoll has contributed a photo to this story.
at 03:29 on April 22nd, 2008
Gas prices in Fridley Minnesota have finally begun to approach the national average, which is $3.50. This station does sell plus for the same price as regular, so some might view it as somewhat of a bargain still.
deplaqer has contributed a photo to this story.
at 03:36 on April 22nd, 2008
You should live in the UK where gas is now approx. $10.00 a gallon!
at 03:47 on April 22nd, 2008
For anyone who wants to know what the equivalent of USD/gallon is in CAD/litre, Check out google calculator (such a handy little tool!):
http://www.google.ca/search?hl=en&q=3.50USD+per+gallon+to+CAD+per+litre
Just replace the cost in gallons to whatever it happens to be. At $3.50USD per gallon, it would cost 93 cents/litre. So us Canadians are not going to have much pity for you Americans. Sorry but we're saving the pity for ourselves.
The problem with fuel is that there is an almost perfect inelastic demand for it. Because everyone needs it, the economy needs it, people will grind and gnash their teeth but they'll pay anyway. Many people predict that peak oil is over, which means gas prices are not likely to go down.
This is why we need to aggressively invest in alternative energy sources, especially for industry and transportation.
at 05:28 on April 22nd, 2008
This picture was taken near Nashville, TN, April 17th.
krstlchik has contributed a photo to this story.
at 05:56 on April 22nd, 2008
This graphic shows the relationship of WTI spot market prices to average gasoline prices for all grades (not just regular). The large curve shows where gasoline prices should have gone if the past trends continued. However, in 2007 the trend took a decidedly different turn from the past. Only time will tell whether this is the new curve or gasoline/oil curve returns to it's former trajectory.
gsaun039 has contributed a photo to this story.
at 07:09 on April 22nd, 2008
This was two weeks ago, we're at $3.75 now!
mizzezpeel 6.0 has contributed a photo to this story.
at 09:42 on April 22nd, 2008
I snapped this at the bus stop a few mornings ago. Yes, it has hit $4 a gallon near where I live. The only feasible solution I can see for the long term, for Americans, is more and better public transit, not just fuel alternatives but workable alternatives to transportation.
klothosv2 has contributed a photo to this story.
at 09:53 on April 22nd, 2008
And the scary thing is, it's only going to get more expensive.
at 13:25 on April 22nd, 2008
The prices of gas rising scares me because it means we're running out of oil. If we run out of oil, a lot of problems would occur like transporting food.
ash☆pigg has contributed a photo to this story.
at 18:36 on April 22nd, 2008
With rising gas prices, I should have seen the signs sooner. I now ride a bike to the bus stop, load bike on front carrier, ride bus to downtown for free (thanks to city/county employee program) and ride to the office without paying for parking anymore. My 44 mile round trip is now free and I save at least $10 a day. My bike will be paid for in less than two months and I get to exercise too!
Its a work in progress, but I think San Antonio is trying to move up the ranks as a bicycle friendly city (so many miles away compared to Portland) . Although, I hope to see more commuters on the road, I don't think most people will have a choice thanks to OIL.
edanderma has contributed a photo to this story.