Gasoline Price Outlook Indicates More High Prices Likely
Many different sources have named the cost of gasoline as a major if not the major economic concern of consumers. Although the return to function of many Gulf coast
refineries damaged by Hurricane Katrina has improved gasoline production compared to the last couple of years there is now gasoline pricing at $4 per gallon. Some analysts are saying that gasoline could go much higher. The major driving force is the price of crude oil which is not clearly projected to stabilize in the near future. The weak U.S. dollar, growing consumption of petroleum products in China and India, and limited U.S. refining capacity have been implicated by various sources as being contributory as well to high gasoline prices.
Americans have been driving less over the summer months the past few years. This may decrease the demand for gasoline and help
to control prices reports the Energy Information Administration but still warns volatility may still play a role. Some OPEC spokesmen are now saying that crude oil prices may go higher than $200 per barrel which would be double what it was a year ago.
The average consumer drives about 12 miles per day and gets about 22 miles per gallon. With this forecast it is possible that people could be paying hundreds more dollars in gasoline costs every year at least.
One wonders if the Valley highways and roads will see less big SUV’s and more hybrids.