As the weekly Lundberg survey shows, in the week ended February 10, gas rose by 11.57 cents to $3.5101, the highest since September. The latest price is also 12% higher compared to a year earlier. What is troubling is that as the attached chart shows, the trend of gradual gas price declines has now firmly ended, having touched a low of $3.20, and has been replaced by a steady climb over the past 2 months. ... Expect the recent highs of $4.00/gallon to be taken out shortly, and to lead to yet another GDP roll over once again. Alas, none of this will be a consolation to European readers, who a few days ago just saw gas hit all time highs.
Here is Reuters with more:
The average price for a gallon of gasoline in the United States rose nearly 12 cents in the past three weeks to about $3.51, due in part to higher prices for North Sea crude oil, according to the nationwide Lundberg Survey.
The national average for a gallon of regular gasoline rose 11.57 cents to $3.5101 as of Feb. 10, the survey of about 2,500 gasoline stations in the continental United States found.
That was a greater change than the 3.5-cent rise in the previous survey, which covered the two weeks that ended Jan. 20.
Survey editor Trilby Lundberg told Reuters that the higher prices came as the price for North Sea Brent crude rose more than $7 per barrel. Brent prices are more volatile and sensitive to changes in the Middle East than is U.S. crude.
Lundberg said U.S. pump prices will likely rise a few more cents in the short-term because retailers have yet to pass along all of the recent wholesale price increases.
Among cities covered by the survey, the lowest average price was in Denver at $3.01 per gallon. The price was highest in Long Island suburbs of New York, at $3.82. The price difference is largely because of taxes, Lundberg said.
This is sure to hit our already faltering economy very hard.
The price of gasoline is reflected in everything else. There will be higher shipping costs, higher food costs, higher clothing costs, and on and on.
States and some municipalities could be winners though, because higher fuel costs will mean higher revenues from tax on gasoline. The consumers will be the biggest loser.
Some say higher gasoline costs, and energy costs in general, will the start of a true inflationary depression and that it will eventually spark food and fuel riots in this country.
Have you thought of how this would impact you if gasoline goes above $4 a gallon?