Gas Prices Could Hit $4.00 Per Gallon This Summer

Rising Prices Caused by Increased Demand and Problems in Refineries

The mathematical equation that no summer driver wanted to see is starting to show itself. With current gasoline inventories continuing to fall and demand increasing earlier than expected, the end result is an obvious one. Gas prices will see a spike very soon.

Earlier this year, the United States Energy Department released a price forecast that said gas prices would peak in May at less than $3.00 per gallon, and that when the summer months got into full swing that there would be a decrease and leveling of overall prices. Here it is at the end of April, and they are reporting that the national average on Unleaded gasoline sits at $2.87. Many locations, including Washington State, Oregon, Nevada, California, and Hawaii already have average prices higher than $3.00 per gallon. Prices in the MidWest and New England areas are also climbing (and surpassing) that $3.00 range, and all around the country the impact is being felt quit rapidly. In areas of Washington State the prices have gone up more than 30 cents per gallon in the last month alone.

The problems leading to these increases aren't new ones, even if it seems to come as a shock to the production companies. As the demand from consumers continues to grow, refineries are simply not able to keep up. The reason for this is two-fold in that they have to increase the rate of production at the refining centers, and produce a higher output. Due to lack of refining capacities, companies are falling behind the curve, and thus not enough product is hitting the market at the moment. This lack of gasoline leads to an immediate demand that is not being filled, and as the summer months come on fast, the only conclusion will be a public that goes unsatisfied.