Friday, April 29, 2011

Gas Prices Jump to $3.91 a Gallon, Heading to $4.00



Not mad yet? Don't worry. We will see $5.00/gallon of gas by summer. Americans are stupid creatures. They are unable to see the obvious. Unfortunately, the American people need to be told by the media that the high gas prices are really high. We need to do our duty and call our Congressman/woman to get this fix right now. If they capitulate, tell them they will be another victim in 2012.

(ABC NEWS) The average price for a gallon of gas in the U.S. is now within a dime of $4.

Drivers in 22 states are paying more than the national average of $3.91 per gallon. In Alaska, California and Connecticut they're paying $4.20 or more.

With one day left in April, gas prices are up 30 cents for the month. On average, the increase has been slightly more than a penny per day. At that rate, the national average for gas would reach $4 on Sunday, May 8. In 2008, when gas hit a record of $4.11 per gallon in July, it didn't cost $4 until June 8.

Analysts predict gas prices will actually start falling toward the end of May, as refineries increase production and more gas becomes available. That remains to be seen: Many analysts failed to predict the prices drivers are paying now, caught off-guard by surging oil prices.

April's rise in gas prices is sobering news for the economy. On Friday, the government said that personal incomes rose in March, but much of the extra money went to pay for gas. Now a 20 gallon fill-up costs on average $6 more than it did on March 31, diverting money from clothing, groceries, take-out food and other spending.

The main reason gas is up is the high price of oil. It rose again Friday, boosted by a weaker dollar. The dollar hit a three-year low against six major currencies. Since oil and other commodities are priced in dollars, they become more attractive to buyers with other currencies and prices rise.