Gas prices on the rise in 2011

Gas prices have been consistently higher each week in 2010 compared to the year before and this past week is no different. Prices are up 45 cents compared with 2009 to reach $3.05--the first time the cost of gas has climbed over the $3.00 mark since September 2008. We all remember (or would like to forget) the summer of 2008 when gas prices hovered around $4.00 and there was a surge on fuel-efficient vehicles, motorcycles and scooters, and public transportation usage. With recent news about the increase in holiday spending this year and a AAA prediction that road travel during the holiday season will be up over 3 percent from last year, signs are pointing to an uptick in the economy. So, what does that mean for gas prices the coming year? The U.S. Energy Information Administration predicts gas prices to average $2.88 per gallon this winter, up 22 cents per gallon year over year. In 2011, higher crude oil prices due to stronger global demand, combined with a tighter supply, will push annual average prices for gasoline to over $3.00 a gallon. So far auto sales are up from 2009 and SUV sales surged as well even though gas prices also rose?we?ll see if the $3.00 per gallon price tag will affect car buyer?s enthusaism for bigger vehicles in the coming year. Many new or redesigned fuel-efficient vehicles are expected to reach dealerships in 2011 including the Ford Focus, Fiat 500, Honda Civic, and Scion iQ. Plus, with the new electric vehicles like the Chevrolet Volt and Nissan Leaf hitting the market, this may be a great time for buyers to try out the new technology and reduce the impact on their wallet by eliminating or curtailing visits to the pump. ?Liza Barth See our guide to fuel economy for advice on saving gasoline, including reports on how to get the best gas mileage and where to find the cheapest gas. Learn about future technologies in our guide to alternative fuels.

Source: http://blogs.consumerreports.org/cars/2010/12/gas-prices-on-the-rise-in-2011.html

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