Updates
February 15, 2012: add president Obama to those who foresee $5 gasoline.
Original Post
American motorists have seen the national average for a gallon of regular gasoline rise above $3.50 a gallon on just three occasions, but it has never happened this early in the year. Analysts say it's likely a sign that pain at the pump will rise to some of the highest levels ever seen later this year.The "more complicated blends" are mandated by the federal government and various states, and thus the "pricier" tag.
In 2008, average gasoline prices had hit inflation-adjusted records nationally by the summer, but they didn't climb above $3.50 a gallon across the U.S. that year until April 21, according to the AAA Fuel Gauge Report. It happened again last year, but not until March 6.
But $3.50 a gallon gasoline is already here in 2012, weeks before refineries typically shut down for springtime maintenance, and weeks before the states switch from their less expensive winter blends of gasoline to more complicated and pricier summer blends.
By the way, that $3.50 is not out of line. The gas station across the street here in a Boston suburb has least expensive gasoline at $3.69.
At the center of the Bakken glut here in the Twin Cities, MN I would be surprised if pump prices go above $4. On the coasts where they compete with the world/tanker markets it could go $5.
ReplyDeleteBTW: My January total natural gas heating bill was a bit more than $60. I did some math. With fuel oil that would have been $250 to $300.
Really?
ReplyDeleteYou posted: "Former Shell CEO: $5.00 Gasoline Is VERY POSSIBLE Before End of Year"
The Morning Call article stated:
"This definitely sets the stage, POTENTIALLY, for much higher prices later this year," said Brian L. Milne, refined fuels editor for Telvent DTN, a commodity information services firm. "There's a CHANCE that the U.S. average tops $4 a
gallon by June, with some parts of the country approaching $5 a gallon."
The SAME THING ??????
Whatever.
DeleteFYI, Reg unleaded here in the East Bay (CA) is $3.93 at my corner Chevron.
ReplyDeleteOf course there's no connection between killing the Keystone XL and the price of gasoline, but the average American can see that killing the pipeline did not make sense.
DeleteThe biggest question: will Americans blame Big Oil or the administration for the price of gasoline. To some extent, I think that "card" has been played once too often, and they're starting not to believe it, especially when drilling is banned and pipelines are killed.