I have heard that gas will be 10 to 12 dollars a gallon by this summer. Is this true? Why such a large jump?

Question

I have heard that gas will be 10 to 12 dollars a gallon by this summer. Is this true? Why such a large jump?

Answer 1

I think that might be a rumor.. I havent heard that one yet..

Answer 2

I don't think it would be 10 to 12 dollars...because this will be very very bad for the economy because it will cause many businesses to go bankrupt...and there will be no more delivery pizza...

Answer 3

Come to the UK honey - we're paying that NOW !!  Its true - its over £5 per gallon at the pumps xxxxx

Answer 4

That was an error.  That was the price in the UK (translated to US dollar).

Good Luck...

Answer 5

yeha when we run out of oil we will be cast back into the stone age

Answer 6

no way, thats not gonna happen that quick

Answer 7

lmao!!11!!!1!

its time for everybody to buy bikes.

Answer 8

I wouldnt doubt it, and frankly, we've done it to our selves....think how much fuel we wasted over the years on nonsense.  Boats, SUVs, unecessary trips, going to parties, "relaxing drives in the country"  geeze, what do you expect, nothing last forever...

Answer 9

Surely you must realize that the person who told you that has NO CLUE what will happen in the future.  You know that, right?

Did this person tell you in 2003 and gas would be $4 now?

Answer 10

actually, the prediction is 10-12 dollars a gallon by NEXT summer

Answer 11

Most of it is based on the price of the raw material, crude oil.  The retail price in this area just passed $4/gallon and over $3 of this is in the cost of the crude.  At the price of that the last few days, it is actually about $3.25/gallon for crude oil.

That means that transporting the oil to a refinery, refining it, storing the products, transporting to distribution points and from there to retail points and then selling it is being done for about 75 cents per gallon.  This 75 cents includes EVERYONES wages along the chain, tanker crewmen, refinery workers, pipeline opertors, truck drivers, the local retail clerk and all the government inspectors are being paid from that 75 cents.

Or are they?  The sales tax here is 8%, so if that is taken out of the $4 price, the real retail price is actually $3.70 per gallon ($4/1.08), meaning all that work is being done for 45 cents per gallon.

There is not a department store in the WORLD that would try to consistently sell any merchandise with that low a mark-up percentage.

The estimates I have seen top out well below your numbers, by the way.  Whatever happens will be a direct result of the crude oil prices.