Gas Price Forecast Summer 2012

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Gas Price Forecast Summer 2012 – The forecast for gas prices summer 2012 are not looking particularly promising. Many experts around the world are saying that considering current trends, the price per gallon road-trippers may be looking at is a frightening $5 a gallon.

This excerpt is taken from a USA Today article published on 2/26/12:

“As USA TODAY’s Gary Strauss reported Friday, the national average is up in recent weeks and more drivers than ever before could soon be paying $5 a gallon. Strauss reported that both coasts are seeking soaring price tags – an average of $4.20-per-gallon in California and $3.91 in New York.

In fact, analysts warn the upcoming season for gas prices could be record-breaking, the News reports.“

Gas Price Forecast Summer 2012

Petroleum experts are pointing to several factors as to why gas prices are on the rise. Tensions with Iran, growing gas demands in Asia and South America and natural disasters are just a few many believe will make this summer an expensive one.

My roommate was showing me her yearbook the other day and in it was recorded how much gasoline was in 2004. $1.54 per gallon. Sigh. Remember those days?

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Most of us are more curious than ever about how fuel prices are set simply because they have been astronomical in the past few years. Perhaps these sky-high prices are a good thing– more people are demanding to know why they must pay them and starting to wonder if there are any better economical (and subsequently environmental) options available.

You should always be looking for a more efficient, eco-friendly alternative to transportation. For many of us, this isn’t an option quite yet but hopefully they will be soon.

The very basic breakdown what sets fuel prices in Canada is as follows:

Crude Oil – The cost per barrel set by the world’s oil-exporting nations. Right now it’s over $100 a barrel.

Refining Costs – It costs a lot of money to refine diesel oil compared to regular gasoline, but both processes are factored into the final price.

Distribution and Marketing – Transportation of the fuel and the company’s efforts to market it.

Taxes – Like everything, oil has taxes on it.

Station Markup – Gasoline stations also need to make a profit, so their price is also factored in.

Other factors that affect gasoline prices: geopolitical reasons– including weather, wars, strikes, the economy, etc.

If you’re not happy with the price of fuel, remember that there are plenty of more economical, environmentally friendly ways of getting about that include car pooling, cycling and public transportation.