Gas Prices Set to Hit New High

By Bill Johnson Published Mar 4, 2005 10:35 am Updated Jan 31, 2009 02:24 pm

This year´s road-trip could cost you much more than it did last year. In a report released Thursday, the the American Automobile Association said gas prices are expected to hit new highs, just in time for the summer driving season.

In its daily survey, AAA reported the nationwide average price for self-serve regular gas is currently $1.92 a gallon. As is usually the case, the average price of gas in California is already much higher at $2.21 per gallon. The record average high for gasoline in the Golden State is $2.44.

AAA is predicting a sharp price hike because gasoline futures in the U.S. have surged over the past couple of days. Wholesale gasoline traded on the New York Mercantile Exchange has already hit new highs and the trickle-down effect should start showing up at the pump in the very near future.

AAA says concerns over high consumer demand in the Unites States and China plus worries OPEC will set higher prices are expected to send retail prices soaring past last season´s high. One OPEC minister was quoted today as saying crude oil could go as high as $80 per barrel. Crude closed Thursday at just under $54 per barrel.