Right now, according to GasBuddy, the national gas price average is about $2.63 per gallon. Not, bad. Not GREAT, but better than most of Europe where prices average around $7 a gallon (OUCH!). GasBuddy’s Patrick DeHaan doesn’t expect prices to go down this winter. Here’s a small clip from his recent blog post:
What a year it has been. Since seeing gasoline prices collapse last fall, prices have risen some to nearly 41% higher than they were a year ago, and I have to say, the economy isn’t looking much healthier, so what happens now?
Looking at data, I believe that between Thanksgiving and Christmas, prices are likely to rise. The state of the economy here is improving, albeit slowly, and that means that our appetite for motor fuels will increase. While I don’t foresee any shocks at the pump between now and Christmas, I do think we’ll see fluctuating prices, but we will see prices slowly move higher.
We’re also seeing an increase in geopolitical tensions as Iran began war games this week, pushing up concern about a rash move from the oil producing country. Also helping boost prices is the perception that with additional refineries closing, capacity will drop, adding more risk into the market if demand moves up in the coming months.
So, what does that mean? I hope it doesn’t mean we revisit the $3.00/gal prices of 2007, like we had the winter before the price explosion of 2008.