T'anks A Lot, George!
Drivers of SUVs and other gas guzzlers may want to keep their vehicles parked over the summer. That's because some experts are saying that gas could -- gulp -- hit the $3-a-gallon mark. "It is not only possible, it is probable," said Fred Rozell, director of gasoline pricing for Oil Price Information Service, which tracks and reports on the oil industry. "In the summer, we consume more gasoline than we produce.
That $3 threshold shouldn't come as a big surprise to pump watchers. Over the last few days, prices at the pump have done more than just trickle upward --they have soared. Prices have surged more than 7 cents a gallon in the last three weeks. Several factors are being blamed for the uptick, including rising crude oil prices, a weaker U.S. dollar, colder weather that drove up demand for home heating oil, and two U.S. gasoline reformulations, said analyst Trilby Lundberg.
According to the U.S. Energy Information Administration, the forecast for prices to remain stable through the summer banked on crude oil being about $30 a barrel. In the last week, the price of crude oil has flirted in the mid-$30s and could rise further. Retail analysts say gasoline costs rise about 2.5 cents per gallon for every $1-a-barrel increase in the price of crude oil.
I can see it now - SUV Owners for Kucinich!