Gasoline Prices Expected to Peak at a National Average of $2.87 A Gallon

The Energy Department has announced that skyrocketing gasoline prices will likely top out around $2.87 for the national average in May. Just in case you have been bedridden over the last month or two, gasoline prices have been rising like we'd just suffered another devastating hurricane in New Orleans or something. The price of gasoline keeps going up so fast that some gas station employees are complaining of sore limbs from having to climb ladders or use equipment to change the figures sometimes every day. The Department of Energy's Information Agency report concludes that the average price of gasoline across the nation through the end of the summer driving season will be around $2.81 a gallon.

Wasn't it just a few months ago when we were being told that there was a significant possibility that gasoline prices in certain areas could possibly dip below the $2.00 a gallon range? The fact that gasoline prices suddenly started falling right around the time that frightened Republican lawmakers around the country kicked off their re-election campaigns back home was just a coincidence, we were told. Although no adequate explanation was ever given as to why gasoline prices seemed to drop so precipitously during the election season-all we ever heard was a vague reference to it being an example of supply and demand at its most advantageous to consumers-it did, nonetheless, appear to be quite a happy coincidence. Too bad for the Republicans that they couldn't get as lucky in Iraq.

I have yet to hear a satisfying explanation for why gasoline prices have risen by 64 cents a gallon over past two and a half months. The Department of Energy's Information Agency's official explanation is that the skyrocketing prices are the result of surge in the price of crude oil, unplanned refinery outages and increased demand. Hmm. Does anyone else find it interesting that the demand for gasoline has increased 64 cents worth over just ten weeks? Is the Dept. of Energy actually trying to say that there is more demand for gasoline in February and March than between Thanksgiving and New Year's Day?