NEW YORK –- It’s not the sort of news that consumers who are already paying more at the gas pumps want to hear: gasoline prices, already higher than $3 a gallon in some states, could go higher and possibly hit $4 a gallon in some areas by this summer.
Some experts are making the dire prediction citing continuing refinery problems, shrinking inventory and strong demand.
The Energy Department forecasted prices would peak below $3 a gallon in May and then fall off before the summer driving season reached its peak. But the nationwide average price for a gallon of unleaded regular gas has already hit $2.87, said one news source, and April still isn’t over.
According to the motorist organization AAA, five states already have average prices above $3 a gallon. They include California, Hawaii, Oregon, Washington and Nevada. In fact, in California, the average price of gas has reached $3.35 a gallon.
Geopolitical tensions can’t be entirely blamed for the rise in crude oil which accounts for about half the cost of a gallon of gas, said one expert. Refinery problems in the U.S. are largely to blame for the price jump, he stated, adding that those five states and possibly the New England and northern Midwest states are the areas most likely to see prices hitting $4 a gallon, mostly as a result of localized refinery problems.
Story Continues Below
Editor's note:
Big Gains as Stocks Go Up ... Or Down! -- Find Out How
Bernanke Reveals `Fiscal Crisis` Ahead
12 Ways to Recession Proof Your Portfolio
