It’s officially summer; time for some fun in the sun, cross country road trips and yes, higher gas prices. The average cost of fuel has gone up 62% in the last six months, but is still 61% lower than the national average 12 months ago. Compared to last year, $2.61/gallon is cheap. Compared to the year 2000, gas is 261% more expensive.
OPEC refuses to increase production until oil hits $75-80 a barrel. The current price of a barrel runs $66, so they are seeking nearly 20% higher fuel prices before they will consider upping production. The short of it is that gas prices are going to steadily increase over the summer, but it shouldn’t get as bad as it did last year. The best thing we can do to stave off higher gas prices is to embrace new technologies and speed our adoption of fuel-effiecient vehicles. Reduce demand, increase supply; learn more at GasBuddy.com.