Will 2008 be
Known for $4
Gasoline?
Despite the recent
decline of the price
of crude oil futures
(from $99 a little
over a week ago to
today’s closing
price of $88.32) and
a slight dip in the
national average
gasoline price (from
$3.10 a week ago to
$3.04 today) it
appears that many of
us believe gasoline
prices will only
continue to climb
higher during the
coming year.
According to a
recent poll on Daily
Fuel Economy Tip
nearly
three-quarters of
respondents believe
that by the end of
2008 the national
average gas price
will have hit $4 per
gallon.
When asked, “will
the national average
gas price climb
above $4 per gallon
by the end of 2008?”
here’s how Daily
Fuel Economy Tip
readers responded:
-
71% said gas
prices will hit
$4 during 2008
-
18% said gas
prices will not
hit $4 during
2008
-
11% said they
were unsure if
gas prices would
hit $4 during
2008
Even with the recent
modest declines in
the prices of oil
and gasoline, it’s
easy to see why so
many of us believe
gas prices are going
to continue to climb
even higher in the
coming year, with
the largest factor
being a continued
increase in demand
for both
commodities.
Unfortunately, as
China and India (the
world’s two most
populated countries)
become more
developed and their
thirst for oil and
gasoline increase,
there’s going to be
more and more
pressure on the
prices of these two
items to climb
higher.
While some of these
higher costs may be
offset by switching
to cleaner and
renewable fuel
sources (e.g. solar
power, ethanol,
hydrogen, etc.)
we’re likely years
away from these
products hitting the
mainstream enough to
cause a dent in the
demand for oil and
gas.
By that time, $4 gas
may actually sound
cheap.
