Gas Prices: Going Up, But How Far?

American motorists don't appear to expect a quick turnaround, if any. In a June 2008 survey by Opinion Research Corporation, 76 percent of respondents anticipated $5 a gallon at the pump by Labor Day.


Some analysts are considerably more pessimistic. Automotive News reports that the CEO of a Russian energy company predicts $250 per barrel, leading to gasoline above $7 a gallon. Higher-yet per-gallon predictions have been tossed out, too.


In addition to the dilemma facing U.S. drivers, no one can foresee the magnitude of the changes taking place in the Third World. As Ted Koppel pointed out on ABC in July 2008, what happens when two or three hundred million Chinese drivers take to the roads, which is likely to happen in the next half-dozen years.

Escalating Demand
If the demand for gasoline continues to escalate, in North America and the world, prices have nowhere to go but up. Not until demand drops—a doubtful prospect indeed—are prices likely to start sinking appreciably. Weighing the volatile global situation, a careful gambler wouldn't "bet the ranch" on a return to the carefree days of low-priced petroleum-based fuels.

About the Author
James M. Flammang is an auto journalist and author, and the editor of Tirekicking Today (www.tirekick.com).