Gas prices have been steadily been rising over the last several weeks, and experts are predicting that U.S. gas prices will top $4 a gallon by Memorial Day.
The current national retail average price for a gallon of self-serve regular gasoline is $3.48. Today’s price is five cents more expensive than one week ago, 11 cents more expensive than one month ago, and 36 cents more expensive than one year ago, according to the AAA Fuel Gauge Report.
Prices could spike another 60 cents or more by May. “I think it’s going to be a chaotic spring, with huge price increases in some places,” says Tom Kloza of the Oil Price Information Service. Kloza expects average prices to peak at $4.05, although he and other industry trackers say prices could be sharply higher in some markets.
If the U.S. average gas price reaches $4 a gallon, then drivers in states like California, Alaska and New York – where gas prices are typically much higher than the national average – can expect gas prices top $4.50 a gallon.
Why are gas prices rising? Recent reports show demand for gas is extremely weak, however refiners are responding to this decrease in demand by cutting back on production, resulting in upward movement in gas prices for drivers.
Meanwhile oil prices have been slightly declining in the last few weeks. Weak demand and euro zone debt concerns have been putting downward pressure on prices. These factors have outweighed the impact of geopolitical tension with Iran and positive signs for the U.S. economy, which would typically push prices higher.
———————–
If your or your business has been affected by rising gas prices, then you may want to consider purchasing a GPS fleet tracking system. A fleet GPS tracking system can provide an ROI in less than six months and immediately reduce fuel consumption.
In today’s tough economic climate, profit margins are slim and companies must implement as many cost-saving initiatives as possible. In order to stay competitive, companies have to look very closely at every penny spent. Utilizing a GPS fleet tracking system can be one of the most cost effective means to manage and reduce fuel consumption. A GPS fleet tracking system can help the average fleet reduce fuel costs by up to 20%.