What Will The Average Gas Price Be One Year From Now?
May 30th, 2007 | by Brian Carr |Thanks to the 40% run-up in the price of gasoline over the past five months, it seems most of us have a pretty gloom and doom forecast of where prices will be one year from now.
In fact, it seems things have gotten so bad that nearly half of us believe we’ll be paying more than $4 per gallon during Memorial Day 2008.
According to a recent poll on Daily Fuel Economy Tip, when asked “Where will gas prices be one year from now?” 49% of respondents stated that they believe gas prices will be above $4 per gallon; 32% of respondents said prices will be between $3.51 and $4.00; 10% stated that prices will be between $3.01 and $3.50; 6% said they believe gas prices will be below $2.50; and 3% believe prices will be between $2.51 and $3.00.
In short, over 80% of respondents believe prices will be higher - and in some cases much higher - than what we’re currently paying today. Considering that current national average gas price is roughly 12% higher than at the same point last year, it’s easy to see why so many people expect to be paying more one year from now.
That being said, barring some gigantic natural disaster on the level of Hurricane Katrina, or some other terrible event (i.e. U.S. - Iran decide to duke it out, etc.), it seems a 25% jump from where prices currently are is rather unlikely.
Taking the summer of 2005 out of the equation, gas prices tend to rise modestly throughout the spring months only to slow their rise or plateau throughout the summer. The only summer in which there has been a drastic spike in prices was post Hurricane Katrina when the national average gas price jumped 20% almost overnight thanks to the massive damage caused to Gulf Coast refineries.
So, if the U.S. can avoid further escalating tension in the Middle East and/or a large natural disaster that interrupts the production and supply of gasoline, I think we will avoid $4 gas for at least one more summer.
Unfortunately, those are some pretty big ifs.
2 Responses to “What Will The Average Gas Price Be One Year From Now?”
By Mike on May 31, 2007 | Reply
Gas prices are too high because production of oil refining has reached maximum capacity and and cannot keep up Americans should use
alt fuel such as bio diesels and other fuels and gear towards more fuel efficency cars carpooling etc…