Yes, gas hasn’t been this high in two years. But it’s not all because of Ghadafi or Mubarak.
Projections in January, before the Middle East and Africa erupted in political turmoil, had prices rising near levels not seen since those painful weeks in 2008.
“At this point, I would say high threes or four [dollars] is more possible,” Brady said. She expects people to get react with alarm — and cut their travel and other spending — if gas reaches $3.50 a gallon. “That’s going to be the next sticker shock,” she said.
Of course, the turmoil in Africa and the Middle East hasn’t helped matters. And things are going to get worse before they get better.
Gas prices jumped 6 cents overnight, as the recent spike in oil prices begins to hit filling stations across America.
The national average price for a gallon of regular gas rose 5.9 cents to $3.287, motorist group AAA said Friday. That marks the third day in a row that prices have risen, and brings the national average to the highest level since October 2008.
So far this week, gas prices have increased nearly 12 cents a gallon. And analysts expect prices to continue higher in the next few days following a sharp rise in the price of crude oil.
Gas prices were highest in Hawaii, where drivers paid $3.757 a gallon, on average. Wyoming had the lowest gas prices at roughly, $3.014 a gallon.
The jump in pump prices follows a surge in prices for crude oil, the main ingredient in gasoline. Oil prices were holding near $98 a barrel early Friday morning, one day after prices hit a high of $103 a barrel — the highest since October 2008.
Economists warn that an energy price shock could hurt the economic recovery in the United States. In general, every $1 increase in the price of oil costs consumers $1 billion over the course of a year.
Will rising gas prices change how you make moves?