Retail prices for petroleum products are expected to increase in 2008, pushed up by the higher average crude oil prices. Both motor gasoline and diesel prices are projected to average over $3 per gallon in 2008 and 2009, with monthly average gasoline prices peaking near $3.50 per gallon this spring.
The national average price of gas this week is $3.11. So within three to six months, expect about a forty cent jump in the price of gas. Of course, prices vary around the country, so you might see $3.75 for a gallon of gas if you live in, say, California. Also, $3.50 is what DOE expects due to Summer demand alone and not unexpected things like war, weather, OPEC, etc. Either way, looks like another bumper year for the oil companies. They just can't keep that stuff on the shelves.