For the first time ever, the average price of gasoline across the United States surpassed $3.50 a gallon on Monday. As prices surge, some analysts are predicting prices as high as $4 a gallon, while others foresee a drop to $3 a gallon this summer.
High gasoline prices aren’t the only concern for motorists. Diesel fuel is also on the rise, reaching $4.20 per gallon on Monday — more than a dollar higher than the $2.93 recorded in April 2007, according to the Associated Press.
Of course, none of this should come as a surprise. Crude oil hit a record for the seventh day in a row — $118 Tuesday morning. The real question is: what happens next?
Different analysts are painting two decidedly different pictures. According to the AP report, many analysts are calling for gas prices in excess of $4 per gallon. A few weeks ago, the U.S. Energy Department even predicted the average gasoline price could peak as high as $4 in June.
The alternative viewpoint is prices have nearly peaked already. Some experts think prices may plateau or drop off in June. According to the Detroit News, the nation’s economy could stabilize in June, with motorists driving less and investors backing away from the commodities market. If that happens, we could again see prices in the $3 range, some analysts claim.
