county news online
Dayton Business Journal...
Gas prices at $5 per gallon possible
by DBJ Staff
Sunday, April 10, 2011

With violence in Libya and the Middle East sending oil prices even higher, gas prices have soared in the past several weeks to near $4 per gallon. But several petroleum industry analysts say gas prices could reach record prices this summer, even hitting $5 per gallon.

Gas prices have increased 50 cents in Dayton during the past month, and have jumped 25 cents this past week. The region’s highest price Friday was $3.89 per gallon, and many stations were charging between $3.80 and $3.85.

On Saturday, regular gallons of fuel averaged $3.79, up 18 cents from last week and more than 40 cents higher than last month, according to a AAA Fuel Gauge Report.

But in what could be bad news for the region this summer, current gas price averages in the Dayton region are nearly a full $1 more than this time last year, with more than a month until the Memorial Day holiday kicks off the summer driving season.

Much of this comes as oil continues to climb, having soared 25 percent to $113 per barrel in the past several months, and nearly doubled from $68 per barrel last summer, according to oil-price.net.

With oil up as much as it is and gas prices already pushing close to $4 per gallon before the summer driving season starts, many analysts are predicting that we could pay $5 per gallon at the pump in the next several months. But they caution that the fighting in Libya and Syria would need to spread to another major oil producing country such as Saudi Arabia for consumers in the U.S. to see the $5 per gallon mark this year and spark an energy crisis.

“We could see $5 a gallon if things take a turn in the Middle East. Right now, we’ve lost Libyan oil. If you lose one more country’s oil, or put it at risk, then I think the possibility of $5 a gallon is a real one,” PFGbest oil analyst Phil Flynn told Fox News in Chicago recently.

Energy costs have a huge impact on businesses, both consumer and B2B. Economists say high oil and gas prices affect more than just prices at the pump, and can hit everything from transportation to exports and even consumer spending.

Rising gas prices can have a serious impact on U.S. trucking companies as well, and the Dayton region has long been a hub for trucking companies because of its central Midwest location and the intersection of Interstates 75 and 70.

The oil spike also has hurt airlines, with many carriers that fly out of Dayton International Airport raising prices for airfares as much as 30 percent in recent months.

For investors, the surge in oil and gas prices has meant strong returns in recent months for energy sector investments.

Manufacturers such as General Motors, Ford Motor Co., Toyota Motor Corp. and Honda Motor Co. can be hit too. When gas prices surged to $4 per gallon in the past, sales of gas-guzzling auto models such as SUVs tanked as consumers turned to smaller, more fuel-efficient vehicles.

Read the story with links and a poll at Dayton Business Journal


 
senior scribes

County News Online

is a Fundraiser for the Senior Scribes Scholarship Committee. All net profits go into a fund for Darke County Senior Scholarships
contact
Copyright © 2011 and design by cigs.kometweb.com