Gas headed to $4 a gallon by Memorial Day?by Andrew Ganz
Gas prices are on their way up... and some analysts think Americans will be paying $4 per gallon by the end of May.
Gasoline prices are up nearly 40 cents compared to last year, which is prompting some analysts to predict that pump prices will top $4 per gallon by Memorial Day.
Gas prices are up about $0.40 over a year ago, and that's a trend many analysts expect will continue as demand rises over the next few months.
"I think it's going to be a chaotic spring," Tom Kloza of the Oil Price Information Service told ABC.
Currently, the average price paid by drivers in the U.S. is about $3.50 per gallon, although those in Fort Collins, Colorado, pay the least (about $3.00), while those in Honolulu pay the most (about $4.07) on average, according to GasBuddy.com. Wyoming has the lowest state-wide average at $2.96 per gallon, while Hawaiian drivers are paying an average of $4.20. California leads the contiguous U.S. with a $3.84 average.
Is $4 a gallon the breaking point for motorists? Energy analysts at Televent DTN think so.
"People will drive less," Televent DTN's Brian Milne said.