Local News

Economists Say Gas Prices May Hit $4 By Summer

National Average Already $3.15

CHICAGO (CBS) ― If you think the price at the pump is bad now, it is about to get a whole lot worse, with oil prices skyrocketing to almost $102 per barrel.

As CBS 2's Kristyn Hartman reports, the oil prices now standing at $101.21 are leading some economists to predict gas prices could rise to $4 per gallon by this spring.

Carpooling, public transportation, and bicycle riding might become much more common phenomena once the weather gets warmer if the predictions come true.

The AAA Fuel Gauge Report said just one month ago the national average for a gallon of regular unleaded was $2.98, but presently, it is up to $3.15. At the BP station at LaSalle Drive and Clark Street, a gallon of regular unleaded already cost $3.49.

The spiking oil prices are fueled by growing demand around the world, and in the United States, trends show demand will likely increase come spring and summer, contributing to the $3.75 to $4 forecast.

It does not make people who are dependent on their cars happy at all.

"It's too much money for everybody," said Jonathan Juarez. "It's going to affect (the way I live)."

"If it's $4 a gallon, somehow we're going to pay it anyway," added Gerry Rosenberg. "It's annoying to drive into a gas station and if it costs $40 to fill up my car when it used to cost $20. It's a big difference."

Not everyone has such bleak predictions. The U.S. Department of Energy predicts gas prices will peak near $3.40 this spring. But analysts predicting worse say that figure is conservative.

One Harvard University economist told the International Herald Tribune that the effect of high oil prices could mean the difference between having a severe economic slowdown and not having one.

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