Gas Prices Hit Highest Levels Since 2008

Just as millions of Americans are set to hit the road for their holiday travels, nationwide gasoline prices have surpassed the $3 mark for the first time since Oct. 2008.
Gas Prices Hit Highest Levels Since 2008
PAY AT THE PUMP: A gas station advertises gas in excess of $3 per gallon on Dec. 23 in Chicago, Ill. According to AAA, the national average price for a gallon of gas is above $3 for the first time since October 2008. (Scott Olson/Getty Images)
12/24/2010
Updated:
10/1/2015
<a><img src="https://www.theepochtimes.com/assets/uploads/2015/09/107770877.jpg" alt="PAY AT THE PUMP: A gas station advertises gas in excess of $3 per gallon on Dec. 23 in Chicago, Ill. According to AAA, the national average price for a gallon of gas is above $3 for the first time since October 2008. (Scott Olson/Getty Images)" title="PAY AT THE PUMP: A gas station advertises gas in excess of $3 per gallon on Dec. 23 in Chicago, Ill. According to AAA, the national average price for a gallon of gas is above $3 for the first time since October 2008. (Scott Olson/Getty Images)" width="320" class="size-medium wp-image-1810561"/></a>
PAY AT THE PUMP: A gas station advertises gas in excess of $3 per gallon on Dec. 23 in Chicago, Ill. According to AAA, the national average price for a gallon of gas is above $3 for the first time since October 2008. (Scott Olson/Getty Images)
NEW YORK—Just as millions of Americans are set to hit the road for their holiday travels, nationwide gasoline prices have surpassed the $3 mark for the first time since Oct. 2008.

According to a survey by motorist group American Automobile Association (AAA), average national gas prices rose 4 percent this month from $2.87 to $3.01 per gallon, the highest per gallon price since Oct. 17, 2008, the organization said.

Although gas prices have surpassed that mark in New York for some time, prices as a whole nationwide have been creeping up steadily over the past year or so. Since the recession bottomed out in Dec. 2008, when gas prices on average were $1.62 per gallon, prices has risen as the U.S. economy has gained steam.

Despite the gas price hike, AAA estimates that more people will be traveling this holiday season—85.7 million—than last year, an increase of 3.1 percent.

California has the nation’s highest gas prices among the continental 48 states, at $3.28 per gallon. It is followed by New York, with average prices of $3.26 per gallon. Colorado has the nation’s cheapest gas, at $2.76 per gallon.

Oil Prices Reach Two-Year High


Gas prices are following the ascension of crude oil prices, which also reached two-year highs this week after eclipsing the $90 per barrel mark on Wednesday.

The U.S. Energy Information Administration said on Wednesday that crude oil inventories in the United States fell by 5.3 million barrels last week, which partially contributed to the rise in oil prices and seen as bullish development for commodities traders.

According to a Reuters poll this week, the Organization of Petroleum Exporting Countries (OPEC) will be pressured to produce more oil earlier than forecasted due to record-setting demand this winter and higher than expected demand in early 2011.

Consumer and business demand also increased due to an unusually cold winter, spurring more homes to consume higher amounts of heating oil, earlier.

Analysts don’t expect oil prices to come down at all, pointing to higher demand going into 2011 and little action from OPEC. All signs point to higher oil prices and bullish sentiment on oil-producing firms.

“With OPEC set to be reactive rather than proactive, the route to $100 appears fairly unobstructed at this time,” said analysts at Barclays Capital in a note this week.

OPEC members, for their part, believe that higher prices are justified. “It’s fair to say it’s about right, but still I think that it needs to improve a little bit more. About $100 would be a fair price for the time being,” OPEC member Shokri Ghanem told Reuters in Cairo ahead of the OPEC meeting on Thursday.

How to Lessen Gas Needs


To maximize gas efficiency, experts recommend keeping vehicles well maintained ahead of the holiday travel days.

“Gas prices have been sneaking up on us lately,” said Rich White, executive director at Car Care Council.

“To ensure that your Christmas cash doesn’t end up priming someone else’s pump, make sure that your vehicle is running efficiently. Simply checking the tires, air filters, spark plugs and gas caps can make a significant difference in the vehicle’s fuel economy and keep you from getting ‘grinched’ this holiday season.”

The Car Care Council, a consumer education organization, recommends keeping tires properly inflated, replacing dirty air filters and spark plugs, as well as changing the motor oil to get the best gas mileage from your automobiles.