Here comes $5 per gallon gas

March 29, 2011

As gasoline prices continue to increase, some experts are predicting the price could shoot up to $5 per gallon before the worst is over. [LA Daily News]

The average price of a gallon of self-serve regular rose Monday for the sixth consecutive day.

“We’re talking about five bucks by the end of August, because of the hurricane season. Then it may drop to $3 by the end of the year,” said Bob van der Valk, a pricing analyst for 4Refuel, a fuel management company. “It’s the perfect storm.”

The Auto Club said gas prices generally peak around Memorial Day, hover through summer, then recede in the fall. California refiners are also mandated by law every year to switch over to the more pricey blend of cleaner-burning summer gasoline.

Experts say the sticker shock at the pump is blamed mostly on Wall Street where the worry is constant about Libya and the Middle East.

“It’s creating high anxiety among those who invest in crude oil,” said Marie Montgomery, a spokeswoman for the Auto Club. “This is directly what is causing it.”

n a recent Auto Club survey, 81 percent said they’ve already cut out unnecessary trips. Half said they’re eating out less and 43 percent are spending less on entertainment because they’re having to spend more money for gas.