$6 a gallon Gas could be coming to A Service Station Near You.

Over the past few years there has been a lot of talk about rising gas prices. With good reason, considering that we have been watching the prices fluctuate up and down over the past few years. If you are like most people then you probably have some questions. For instance, what is the cause of all of this? And how high will they go this summer?
If you ask me, the cause of all of this is rooted in a number of different areas. The most prominent simply being supply and demand. During the spring and summer months people drive significantly more. This results in an increase in the demand for gas, which ultimately causes oil companies to increase supply in order to meet the need for gasoline. Unfortunately, our world is not perfect and there are many different things that can effect supply. For instance, if a hurricane were to take out a few oil rigs in the gulf we would see a temporary spike in gas prices. Another instance could be if Saudi Arabia were to cut off our oil supply or raise the price of crude oil. One other reason for higher gas prices this year could be a result of a "weak" dollar. Since the dollar is not worth as much as it used to be,  oil companies may need to increase prices in order to compensate for the devaluation of the dollar. Of course, the absolute worst case scenario would be if all three of these happened around the same time. And for everyones sake I hope that never happens. None the less, it is a fact that gas prices will increase this summer. It happens every year and it will continue to happen because that is how economics works. The real question is not will gas prices increase? It is by how much? To be honest I don't know how much the price of gas will increase. But I do have a prediction. In my opinion, with the national average for regular unleaded sitting at $3.84 per gallon I do not that we will hit $6/gallon this summer. Here is a list of what I think gas prices will peak at for the following areas this summer.
California -- $5.45
Midwest -- $4.30
East Coast -- $4.35
North East -- $4.40
With all that said don' t worry too much about the price of gas and have a nice day!


http://www.eia.doe.gov/oog/info/gdu/gasdiesel.asp
http://www.cnbc.com/id/42683030