Oil prices are expected to continue to rise in 2011 – beyond $100 a barrel. That could push gasoline prices to over $4 a gallon by summer in some parts of the country, according to industry experts. Not only will drivers feel the pain at the pump, but the cost of other goods and services will also rise. Whenever gas prices rise, the cost of doing business goes up. Many businesses whose margins are already razor thin are forced to pass the increased costs to the consumer. Things like food, travel, and retail goods become more expensive.
Gasoline price expert Fred Rozell predicted that 15 states, including Alaska, Hawaii, Connecticut and Rhode Island, will see gasoline prices top $4 a gallon by Memorial Day. “A dollar more per gallon …will cost about $750 more per year for each motorist, and there’s a psychological aspect to gas prices,” he said. “People are going to be up in arms about this.”