• Mar 15th 2011 at 2:52PM
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With the average cost of gasoline in the U.S. now at $3.53 a gallon, the typical household will spend around $700 more this year to fuel up their vehicles than it did in 2010. That's according to numbers from the Department of Energy (DOE), which says that total gasoline expenses for the average American household is expected to hit $3,235 in 2011, up 28 percent over last year.
Higher gasoline prices mean that consumers have less money left over to spend elsewhere, which some fear may have a negative impact on the U.S. economy. Within a couple of weeks, the DOE believes that gas prices will rise by at least 10 cents a gallon, adding more pain at U.S. pumps.

By mid-summer, drivers are expected to pay, on average, $3.71 for a gallon of gas, but the DOE also says that there's around a 25 percent chance that pump prices will exceed the $4-mark by the end of August. That's closing in on the industry-changing tipping point that Paul Taylor, chief economist for the National Automobile Dealers Association (NADA), discussed earlier this month, and August is not that far away.

[Source: Reuters via Green Car Reports | Image: diaper – C.C. License 2.0]

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    • 1 Second Ago
      • 4 Years Ago
      Prius along with other autos from Japan will increase in price as some of there inventory was flooded. Electricity is going to cost more in Japan for a while.

      I don't worry about gas prices much, demand destruction will happen as gas prices go up, the less fortunate will consume less oil and clear the roads and hwys off for the rest of us, traffic will be lighter it will be a joy to drive with less cars on the road.

      Demand destruction is why we will stay in this never ending circle of consuming oil. First thing out of my buddies mouth when I told him I was fed up with the oil economy and wanted a EV, "what are you going to do? Gas prices will come back down, what are you going to do, buy or build a EV? They are heavy, slow and can not go far, how is that going to work?"
      I committed 42k dollars to get off oil and it makes me happy every single day. How can you put a price on being happy. The freedom of driving is taken away by high oil prices. Sure I can pay for the gas but it bothers me that in a country where choice is king we have no major manufacturers giving us a choice to go hundreds of mile without oil.
      Ten years ago we had battery patents being purchased and put on a shelf by oil corps that would not allow them to be used in a pure EV. Some would say it is just good business for GM to sell to the oil corp Chevron/Texaco the Ovionic battery patents who did not allow anyone to use them in large format for pure EV's. IMO it is the oil corps taking away the freedom to drive with out them getting there pound of flesh, via the national trade deficit, military expense searching each tanker that come in and out of the Straits of Hormuz as well as keeping tanker shipping lanes open, to suing the EPA, etc... The list is extensive when it comes to the ethics involved with GM and other OEM's and oil corps efforts to keep us addicted to oil and themselves in profits. It continues unabated even now after we the people bailed them out. They are doing as little as possible for this country, as far as they are concerned the country can go bankrupt as long as they profit to the end.
      • 4 Years Ago
      It is certainly within the realm of possibility. With the nuclear energy folks running scared now because of The magnitude of the Japanese disaster, fossil fuels will have to pick up the load. That has to increase demand resulting in strong pricing power. Time to trade your Boss Mustang in on a Prius! Supplies were starting to equalize after the traders drove the futures up because of Middle Eastern unrest, but this Japanese disaster has the potential to escalate actual demand.
        • 4 Years Ago
        Prius prices might be on the way up also if production is disrupted by electricity outages in Japan.
      • 4 Years Ago
      If US customers react the same way as European do, they will cry about the prices and then go and buy a car, which needs another $1000 more for fuel...
        • 4 Years Ago
        Yeah no kidding

        Then build more suburbs
      • 4 Years Ago
      Oil and commodities prices are dropping due to demand destruction resulting from the crisis in Japan. This combined with the success of the Saudis in keeping protests at bay should help to stabilize oil prices.
        • 4 Years Ago
        Every few months there's a different event to either stabilize or destabilize oil prices.
      • 4 Years Ago
      Considering most US households would have wasted that $700 on a new big screen tv, I don't see how that is a big deal.
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