A few weeks ago, Hunter over at Financially Consumed took a poll from his readers to gauge their views on what gas prices might look like in the near future. Using Gas Buddy’s prediction, he asked readers to share their own predictions. At the time, I really thought gas would increase sharply to maybe $3.99 a gallon. Boy, was I off! In my neighborhood gas has risen from $3.76 a few weeks ago to over $4.08 per gallon for regularĀ  unleaded. Ouch. It’s dejavu all over again from a few years ago (2008 I believe) when gas prices were pushing $5.00 a gallon. Currently, gas prices are high in most of California as seen from Gas Buddy’s heat map below:

Gas Buddy’s Heat Map

I’m sure prices will continue to climb for a few weeks at least. I’m now beginning to think I should have voted for a serious jump at $4.20 – $4.39 on Hunter’s poll. I guess I really didn’t understand how serious the Iran issue was and how it would affect gas prices.

Are gas prices soaring in your neighborhood?

14 Comments

  1. Actually there is no real shortage of oil. The prices are high due to speculation. Watch the movie (especially if you lived in CA during 2000-2004) Enron – The smartest guys in the room.

    That was about electricity, this is about oil. Different commodities, same fundamentals.

  2. Hi there,
    I’m in the Mid-South and our gas prices are definitely rising. (Of course, not nearly as bad as in the West and North). We are going up approximately 7 or 8 cents a week. Right now our Costco regular is at $3.279. Our media is calling for it to reach $4.00 by summer. That would be terrible.

    • @Ann – I’m guessing we’ll be hitting $5.00 by summer if things keep edging up. I guess I’ll just have to ride my bike more!

  3. Definitely rising. Yuck! Groceries will soon be making an even bigger climb in prices — and I was just getting used to the higher prices in the store as is!

    • @Christa – I’m already noticing higher grocery prices. I went shopping Sunday and noticed prices were 50-cents higher. Yuck!

  4. rene@personal loans Reply

    Prices are going up not just for gas, but for EVERYTHING. Car pooling would be a really good idea, and friendly for the environment too! Just wishing how our payrises would reflect the GDP price hikes!

    • @Rene – It would be nice if salaries would keep up with inflation and rising prices. I think the last poll I read said salaries have stagnated and are about at the same level as 1996!

  5. Hunter - Financially Consumed Reply

    Hi Jennifer. Firstly, thank you so much for mentioning my Gas Price poll. I think your new prediction is going to be fairly accurate, but I’m even more skeptical. I think we’ll be nudging $5.00.

    Unlike some other commenters I think there is a legitimate supply concern for oil. There is very little excess pumping capacity so even a minor disruption in supply will send prices skyrocketing. The easy to reach and cheap to pump oil is fast diminishing. It requires massive investment to drill for pockets of oil miles under the ocean floor. The rising cost of production alone is enough to force retail prices up even without supply concerns. Hang on for the ride.

    Let’s build our bicycle friendly infrastructure now, before we need to park all our gas guzzlers by the side of the road.

    • @Hunter – I’m definitely riding more often and it’s a good thing since gas prices increased about .15-cents just today! All I can say is we need to start thinking about community planning – how to create a walkable, bikeable city where people can get around town and to and from work by walking, biking, or taking public transportation that’s just as convenient as driving. I think we’re a long way from that goal, but we’re improving little by little.

  6. It really pisses me off to know that one of the most unstable regions of the world is also one of the most vital. I wonder what would have happened if all those oil is located somewhere else than the Middle East.

  7. Gas prices are insane here. I’m in Vancouver Canada, and many of those who live near the border go across to the states to fill up. The other day, the gas stations were at $1.37/litre (about $5.1/gallon). They do vary day to day but it’s always disappointing nonetheless

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