Update: I am gasoline-centric like most in the U.S., but as a reader pointed out, diesel prices are way up there as well. Whereas gasoline just barely beat last May’s record, diesel is currently $1.00/gal higher than it was last spring.
There have been various reports over the past couple of days that we hit a new gasoline price record. The previous record was reached on May 21, 2007 at $3.218/gal. Today the EIA published their weekly gasoline report, and confirmed that we have indeed reached a new retail record in the U.S. of $3.225/gal. This is $0.666/gal higher than the price of one year ago, and we are likely to set additional records – at least for another few weeks.
While last year’s record numbers were on the back of record low gasoline inventories, this year’s climb is on the back of record high oil prices. I think prices will peak short of the $4/gal mark, primarily because inventories are so high. But if oil prices continue to run up, or gasoline inventories start to fall, all bets are off.
Here’s hoping that this encourages people to start changing their behaviors and reduce their consumption. High prices are here to stay, so best get yourself prepared for them.