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Will Gas Prices Ever Level Out?

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On: Fri, Jul 26, 2013 at 7:56AM | By: Elizabeth Puckett

Will Gas Prices Ever Level Out?

Over the month of July, the prices at the pump spiked, especially over the 4th of July holiday. Although we are already well into summer, you can expect more price hikes due to increased summer demand. Reports also show that the price of crude oil has skyrocketed due to unrest and uncertainly in Egypt and a lower than normal surplus.

Across the United States, the average price for a gallon of gas stands at $3.68 (up four cents since last week and 18 cents since last year in the same week); diesel currently averages at $3.90 a gallon (up three cents since last week and 12 cents from one year ago).

The chief oil analyst at GasBuddy.com, Tom Kloza, predicts that gas prices will to keep going up and up. His forecast includes a 50 percent chance of prices passing the current-year high—$3.79—which happened in February. This rate hike is expected because the middle of the summer is the peak of driving season and it has lessened the supply of gas.

Oil refineries that make domestic gasoline are said to running at full capacity currently and if anything happens to disrupt their operations, the price of gas could skyrocket even further. What could happen you wonder? Well, hurricane season is here, and history can tell you what that means for domestic oil production!

While prices do have the potential for going up, experts who monitor the industry don’t expect them to exceed the $4 a gallon mark in 2013.

Consumers seem to be reacting to gas prices as hybrids, electric cars, and economical compact sales appear to be on the rise. With the price of gas on the consumer’s mind, if the price of a gallon of gas goes up, so will the sale of more fuel efficient models.

New fuel efficiency standards, more fuel efficient options, and a new blend of gas with more ethanol seem to indicate that no one really thinks that gas will ever go down in price. General Motors is even making a huge effort to increase the fuel economy of the trucks—we learned earlier this week that there’s a significant weight reduction project underway for their passenger pickup lineups.

Buying a new car for fuel efficiency alone isn’t an option for everyone, so here are a few tips to squeeze the most mileage out of a gallon of gas:
• Ensure your tire pressure is the same on all four tires and at the manufacturer’s recommended PSI.
• Replace or clean your air filter as recommended.
• Make sure your alignment is properly adjusted.
• Reduce cargo and unnecessary weight in the cabin and trunk.
• Keep a light foot on the accelerator.


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