Thursday, February 28, 2008

Gasoline may hit $4 per gallon

Fuel prices are 12 cents short of record set in May 2007
From The Olympian 2.28.2008

South Sound drivers likely will pay a record-high price for gasoline this year, and there is a chance that prices could climb to $4 a gallon, industry observers and an economist predicted Wednesday.

The average price of a gallon of regular unleaded gasoline in the Olympia area Wednesday was $3.34, up 77 cents compared with a year ago and up 31 cents from a month ago, according to AAA. Still, it's 12 cents short of last year's record of $3.46, set in May, AAA reported. AAA spokeswoman Janet Ray wouldn't rule out the possibility that prices could climb to $4 a gallon in markets known to have the state's highest prices, including Bellingham and Vashon Island. "Maybe we can dodge the $4 bullet, but I don't think we can dodge the $3.50 bullet," she said of the Olympia area.

A spokesman for independent gasoline dealers said drivers' use of fuel will determine whether the milestone is reached.

"If people don't cut back, it's likely we will see $4," said Tim Hamilton, executive director of the nonprofit Automotive United Trades Organization of McCleary, which represents independent gasoline dealers statewide. (read more)

Note from the editor: This could be a great time to cut back, as mentioned above, if we do not, we could be looking at a new record for gas prices. I see this as a great incentive to get your bike out of your garage, give it a nice tune-up for about two weeks worth of gas money and get that thing out on the road instead of your car. I have been a bike commuter for several years now and an alternative transportation goer, but I spent the month of January commuting in my car because of limitations I endured during the month. I was appalled at the money I forgot I was saving by riding instead of driving. I spent $130 during the month to fuel my 26 mile per gallon Hyundai. That's almost $1600 per year spent on fuel for an economy car! Although I do not recommend getting back in your car if you already bike commute to check yourself, this was a great wake up for me to realize how much money I do save by commuting by bicycle. See how much money you would save...

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