$5 Gas Here Sept. 15?

If the current trend of gas price increases continues — which has tracked at basically a penny a day — Sept. 15 will be the day gas hits $5 a gallon, 98 days and cents from today’s $4.02. This was how I almost guessed predicted the $4 mark a few weeks ago, and believe it or not folks asked me to try again.

While it was pretty much a foregone conclusion we’d hit $4, I don’t think $5 is so clear cut. For one, we’re in the beginning of the summer driving season. Every year at this time gasoline prices go up. By Sept. 15, two weeks after Labor Day, prices should begin their normal retreat.

Some analysts keep talking about a hurricane striking, damaging oil refineries and raising prices. Hurricane season started June 1, but most major storms don’t hit until August. Nine of the 10 costliest U.S. hurricanes in history have all occurred in August or later. Forecasters are predicting this could be a record season for storms. Of course, they predicted that last year as well, and it wasn’t. Tropical Storm Arthur did arrive very early on May 31, though, potentially foretelling of things to come.

What we’ll also learn over the next 98 days is if the trend of Americans driving less continues. With China’s ever-expanding growth — 10 million new cars are expected to be sold there this year, with U.S. new-car sales expected to go down to 15.5 million — what Americans do might not matter. As always, chime in with your thoughts below.

Comments

[sam]

I am not sure when will nation average will hit $5.00 but CA should hit $5.00 gallon with-in 30 days. Currently the lowest price i see around for 87 octane is $4.27.

[J]

As long as reporters keep scaring the heck out of everyone, and seeing no one really cares; then the oil company will start charging more. That's some basic economy knowledge.

[George]

G-D Bilderberg Group!
They just have to keep on pushing, and pushing...

I guess everyone will just have to drive the Prius & Volt.

[Ben]

Oh Come On!! There isn't Going to be any kind of storm like that it's just a bunch of lies oil companies fabricate to make more money

[JJJR]

$5.00 gas within the next few months, will that come before or after the depression we seem to be headed for? By then the government will be deeply immersed in finger pointing still talking about the “R” word. Golly we’re likely to have at least two more useless senate hearings by then. Things are progressing nicely for the Democrats aren’t they? Keep digging George you're bound to come out in China soon.

[ziggy]

I get tired of seeing all the blame on the oil companies and the gov't. Sure they play a part but it's miniscule compared to what the market itslef controls. The oil companies import over 60% of what we consume. They don't control the price of foreign oil. Besides they're a publicly traded company that depends on profit. No one complains when drug companies or HMOs make the same % of profit. The only thing that the federal gov't can do is open up more lands for drilling or subsidize alternatives. Additional drilling won't make a difference and subsidizing alternatives will only hit you in a different part of your pocketbook. The market will work itself out...sure we may eventually pay $8 a gallon but it will force the market towards fuel efficient and non gas vehicles. 50 years from now people will say "remember in 2008 when gas a big deal" much like we talk about the 70's energy crisis.