Despite the recent decline of the price of crude oil futures (from $99 a little over a week ago to today’s closing price of $88.32) and a slight dip in the national average gasoline price (from $3.10 a week ago to $3.04 today) it appears that many of us believe gasoline prices will only continue to climb higher during the coming year.
According to a recent poll on Daily Fuel Economy Tip nearly three-quarters of respondents believe that by the end of 2008 the national average gas price will have hit $4 per gallon.
When asked, “will the national average gas price climb above $4 per gallon by the end of 2008?” here’s how Daily Fuel Economy Tip readers responded:
- 71% said gas prices will hit $4 during 2008
- 18% said gas prices will not hit $4 during 2008
- 11% said they were unsure if gas prices would hit $4 during 2008
Even with the recent modest declines in the prices of oil and gasoline, it’s easy to see why so many of us believe gas prices are going to continue to climb even higher in the coming year, with the largest factor being a continued increase in demand for both commodities.
Unfortunately, as China and India (the world’s two most populated countries) become more developed and their thirst for oil and gasoline increase, there’s going to be more and more pressure on the prices of these two items to climb higher.
While some of these higher costs may be offset by switching to cleaner and renewable fuel sources (e.g. solar power, ethanol, hydrogen, etc.) we’re likely years away from these products hitting the mainstream enough to cause a dent in the demand for oil and gas.
By that time, $4 gas may actually sound cheap.
{ 1 trackback }
{ 3 comments… read them below or add one }
Perhaps you guys should stop complaining. Up here in Canada we’re paying about $1.00 per litre. That’s about $3.80 US per gallon!! (1 US gallon = 3.78 litres, $1 CAN = $1.01 US)
Whilst we’re addicted to gas the pushers can take the price as high as they wish!
How about writing your spineless politicians and ask them to start taxing gasoline. That should get the price up where it would really start changing peoples habits. People will be fine with $4 gas, not that big a deal, pay for on the credit card, rarely realize how much it adds up to over a year.