The Price of Gas

About a year ago I posted that a price of a gallon of gas at the pump would be around $5 by this time this year. My prediction was based on very a very reliable source inside the Washington Beltway. However, it seems that due to the last election and the slump in the economy I am a little off. Last week in central Florida I saw pump prices for a gallon of regular average around $2.54 and in some places as high as $2.80. I know that in some areas around the country it runs much higher.
I suspect that by August the price of gas will be back on track and the march to $5 will be rolling on. I anticipate $3 a gallon in August but it could be higher.
Eventually it will hit the target price of $5 and it will stay there barring some unforseen financial or environmental disaster or another presidential election. This is because the cost of a gallon of gas has absolutely nothing to do with the price of oil futures, or problems in Caraccas, OPEC or the war in the middle east or whatever the politicians or news services tell us. It is an agreed upon price.
The envirnomental lobby is behind this rise to 5 because they feel, perhaps rightly so, that it is the only way to get people to start taking real action about the fossil fuel crisis and global warming that faces our world’s future. The auto industry is down with it and the oil companies are happy as clams – and more profitable than ever. Can anyone say Exxon Mobil stock?
It sucks but it may be the right move. We have to lead the way to a better future for the spawn we leave behind.
We need to develop nuclear and solar energy plans that make sense and we have to get off the fossil fuel jag. I love my car as much as the next man but this administration be sinking more money into infrastructure. To me infrastructure means mass transit, not just more Interstates and 6 lane highways to suburbia.
We just leased a 2009 Prius. It’s not much to look at really but it’s averaging around 45mpg and it feels good to be ‘green’ if nothing else. I feel proud to drive it. Don’t get me wrong, I love my Explorer but it doesn’t make me feel proud to drive it – it just gets me where I need to go with a lot of junk.
So watch the price at the pump go up steadily. It may dip down now and again but the trend will be up. $3 or maybe $3.50 by August and who knows after that. If there is nothing to deter it, the price will be $5 before we know it.