Gas Prices Spiking

Gas-prices-spiking
Gas prices started out lower than average this summer, but industry analysts now predict that 2012 may turn out to be the costliest summer in years, reports USA Today.

Brian Milne of energy tracker Telvent DTN believes that gas prices will peak this month around $4 a gallon for regular fuel before starting to slide in September.

The current nationwide average price of a gallon of regular fuel is $3.709, up about 30 cents from last month's national average price of $3.396, according to AAA's fuel gauge report. Last year at this time, a gallon of regular averaged $3.594.

Many parts of the country are seeing higher prices than the national average for several reasons, Milne told USA Today. Recent production cuts at Midwest refineries pushed prices up in the area. A refinery fire in Northern California has done the same for the West Coast.

"The $4 threshold is when you see sticker shock and marked changes in consumer behavior and spending patterns," Scott Anderson, chief economist at Bank of the West, told USA Today.

Tell us: Will $4 a gallon change your spending habits?

Related
2012 gas prices head for record (USA Today)
Midwest Sees Dramatic Spike in Gas Prices
More Automotive News on Cars.com

Comments 

Highdesertcat

$4/gal has not changed anyone's spending habits in the past. Americans just fork over the money. They gotta have it.

I spend at least $100 a week keeping my own vehicles and those of my grandkids gassed up, as well as keeping my AC generators ready for the next power failure.

This only underscores that most Americans do not care about the price of gas. They'll buy it until their money runs out. I'll buy it until my money runs out. I'm addicted to gas.

At least there is no shortage of gas like there was in 1973. What would kill the US economy is if fuels became in short supply.

As long as we can buy fuel, no matter what the price, we're going to be OK.

Lance

Back in 08, when gas prices shot up, there was a huge change in car buying habits. Hybrids and small, high MPG cars were selling like crazy and SUVs and trucks sales went way down. They only came back when gas prices dropped. I can see the same thing happening this time around. I think people that are on the edge every month definitely will change their spending habits. If one has more than enough money to handle these increases, their spending habits probably won't change.

However, even with enough money, people buying luxury/premium cars say that MPG has become a part of the buying decision when it really wasn't ten year ago.

GEORGE POTTER

I drive a hybrid so when gas tops $7 I may have to change my driving habits, until then I'll just keep driving as usual.

audi

NO. maybe my family but not me

mike

Remember the 70s the Carter days? Every time a Democrat takes office we rum out of gas. Carter told us we will run out of gas in 20 yrs. Carter was going to ration us per week on gas.See the lies the Democrats tell the American people? Reagan took office deregulated everything, we didnt have a problem. Clinton and the Democrats sold our oil Refineries to China. 8 in Ponca city, Ok alone, Now we have to send some of our crude oil to china for processing and buy it back. Obama told us we need gas prices like Europe for we will not use much gas and we will buy small cars.

mike

There is plenty of oil. It is not fossil fuel, It makes itself from natural resources. You can make oil from sand. When Obama took office gas was $1:80 a gallon. The nut Obama says drilling will not help but pays Brazil billions of dollars to drill for oil to send to us. Obama is selling our oil reserves and permits in America to China. Obama says if he started drilling now it would not show for 4to5yrs.So that means all of the oil that is produced now was drilled in the Bush days that Obama is taking credit for now, See his lies? Hes not selling oil leases anymore. All he has done was wind mills and electric cars and shut down over 25 coal plants so far. Look at all of the jobs gone. If we started drilling again and put refineries back in we would have plenty of oil and prices will go down. Till another Democrat takes office and we will have another oil crises. History repeats itself over and over again. Us older people have lived through The lies of the Democrats, They scare to make people do what they want. Read the history of FDR's trade agreement and you will see what happened to our jobs and Clinton signed Nafta which is part of FDR's trade agreement. Carter lift this country in a worse mess than we have now, Reagan took office deregulated everything and cut taxes and put his Reaganomics to work and all of the Demorcrats screamed that is would not work, In a few years this country turned around. When Clinton took office all he did was kick back and enjoyed the prosperity of what Reagan did. Clinton had a Repulican congress that kept him from spending to much and he had to answer to.

mike

Obama is wanting to turn loose some of the government oil/gas reserve or extra fuel saved up to lower gas prices. Our government holds millions of gallons gas in storage tanks for their own use. Now look at Obamas lies!! He says drilling will not help gas prices, but then turns to other countries and ask them to drill and send us gas for our prices will go down and he is now wanting to open our government gas stockpiles for gas will go down. See his lies?????? He wants cars getting better mileage which the car companys said in 2013 the prices of all cars will go up $3,000 because of this mandate. Everthing this president Failure does makes us loose money. President Failure has never had a job in his life, just a union cumunity organizer.

Highdesertcat

mike, Obama is just trying to get re-elected and wants to stack the deck in his favor with the voters.

Obviously his hope and change mantra won't work this time around so he has to drop back and punt, by trying to make the lives of the voters somewhat better.

One way to do that is to lower gas prices by releasing oil from the SPR.

Hey, the only thing this guy cares about is keeping his own job. He doesn't care about joblessness or the economy.

That's why unemployment is so staggeringly high in America. No reason for that with the right policies.

It is up to the voters to change things by throwing him out and vest their hopes on another president.

Having said that, Obama will win re-election handily. It's in the bag. We should all brace ourselves for four more years of Obama's vision for America.

I'm an Independent and I don't care to vote for either Obama or Romney because one is as bad as the other.

So this time around, the Dems and Repubs have to sort this thing out between themselves because no self-respecting Independent is going to vote when neither candidate appeals.

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