Gas Prices Could Rise By 20 Cents In The Coming Weeks

USAToday is reporting that gas prices could jump by $0.20 in the coming weeks as retail prices catch up to the recent surge in oil costs.

“We haven’t seen the full pass-through yet,” Energy Information Administration head Guy Caruso said.

Today’s national average is $3.105, up 39% from last year. Oil prices have risen approximately $20 a barrel in the past two months, and gas prices are up $0.30.

Drivers’ price at the pump could rise by 20 cents [USAToday]
(Photo:amanjo)

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  1. Rando says:

    They’ve been jumping and dropping by 20 cents for the last 3 months. BFD?

  2. MatthewVA says:

    Reminds me of the stock market. It drops like 300 points, then is back up over 14000, back down, back up. Hmm, wonder if they are related? Association = causation? haha

  3. darkened says:

    As much as i hate to say this and even think about it, it’s impossible for oil to EVER go down in value. It will only continue to raise in price possibly even up to the $700 a barrel range before it finally stabalizes again. The only question is whether this will be the price next year, 5 years, or a decade or 2 away. Google or wikipedia Peak oil for validation of this.

  4. balthisar says:

    @darkened: I don’t know. If I gave my working invention of cold fusion to the world, oil would be pretty worthless before too long.

    (Well, we’d still need it for other petrochemicals, but it would become super dirt cheap.)

  5. aparsons says:

    NYC is affordable again when you factor in the cost of living in surburbia.

  6. MeOhMy says:

    Of course regardless of actual economic factors, when news outlets report that fuel prices are going to go up 20 cents in the next weeks, everyone up and down the supply chain is only happy to oblige.

    I don’t know if a media moratorium on useless “stories” that fuel prices are going to increase would help…but I don’t think it would hurt.

  7. mopar_man says:

    Get the public ready for a $0.20 hike and they can jump it $0.15 without the public getting angry. Everybody can sit back and wipe their brow, exclaiming, “Whew! That was a close one.”

  8. yg17 says:

    Yay, and I get a car that requires premium in a month…..FUCK.

  9. forever_knight says:

    heard on a program the other day that oil will be 4-5$/gallon within a few months with a long-term prediction of 15-20$/gallon within 5 years.

    if $15/gallon gas doesn’t eliminate SUVs from the roadway, nothing will.

  10. vanilla-fro says:

    Quick question that is somewhat off topic: What the hell is the deal with the $.999 on gas prices.

    And this will suck but, hey we gotta deal with it one way or another.

  11. Macroy says:

    Ha! I just filled up! And I barely drive! Take THAT, gas prices!

    Although, next time I fill up, it will probably be +40 cents or so. Foiled again! :(

  12. morganlh85 says:

    I’m sure they’ll go up 20 cents on Thanksgiving when I need to drive 300 miles home. Never fails.

  13. Notsewfast says:

    @darkened:
    That is ridiculous and untrue. Ignoring the fact that nobody knows how much oil is left on the planet, the idea that prices will NEVER decline is simply alarmist. Oil and gas are traded on futures markets and whenever there is volatility or uncertainty, like there is now, prices will rise. We won’t see $100 a barrel immediately, although we may eventually. For gas to be as high as you’d suggest, there would need to be better evidence than Wikipedia posting or a google search.

    @forever_knight:

    Oil will need to double in order for gas to hit $4 a gallon. The news is eating this up and loves to make wild predictions. Don’t plan on $4 or $5 a gallon for awhile.

  14. mopar_man says:

    @morganlh85:

    And just in time for those heading out to do Thanksgiving shopping. It’ll keep going up until after Christmas when “oil prices level off” and the oil company CEO’s laugh all the way to the bank with their pockets overflowing with money.

  15. howie_in_az says:

    @yg17: I thought my BMW 330i “needed” 91+ octane fuel, but it runs perfectly fine on 89.

  16. Mr. Gunn says:

    As long as they take the proceeds for the million gallon oil spills that seem to happen every couple years.

  17. hn333 says:

    That’s it I’m not driving anymore.

  18. @hn333: Now you can have a theme song: [www.google.com]

  19. goodkitty says:

    I still don’t get what looks like a recent local trend… pricing the higher octanes on some kind of expanding price scale. It used to be that you’d see a 10 cent gap between grades (87, 89, 91), now I’m seeing the higher-traffic local stations price 89 at a 15 cent premium over 87, and 91 at another 15 cent premium over 89 (so 30 cents higher instead of 20). It’s not 29 or 27 cents, no, it’s exactly 30. What’s up with that, just pure profiteering or is it some kind of ‘higher demand’ for the higher octane with all the new cars coming out that seem to need it?

  20. hn333 says:

    @LastVigilante: LOL nice

  21. Buran says:

    @howie_in_az: It will do it but it will lose performance and efficiency. It would be a good idea to run a few tankfuls of premium to see how much is used, then run a few of regular. Many vehicles optimized for premium will lose efficiency when fed regular.

    If you don’t see a loss, and don’t mind the performance decrease, though, regular will be fine. Just watch out for knocking, which is bad for your engine, and which is why some vehicles require premium.

  22. darkened says:

    @SECRET AGENT MAN Actually, they do know how much oil is on the planet that’s why no major oil expiditions have been ventured because they spend billions of dollars to find less than that much in oil. That’s why they are going through elaborate schemes to get untapped oil from the oil sands the the like 10-20 mile down oil from the ocean because every major easy to get oil from oil field has already been found accounted for and most are at their peak production or already on their way down from the start of running out.

    And yes it should be alarming because it’s a fact that this is inevitable unless we make a major shift from oil to another energy source. The only question is will enough happen before the world economy breaks down over not being able to transport goods to build the technology to create energy not dependent on oil. The other biggest scam about “green technology” like solar cells is they require huge amounts of oil based materials to create them, and if not just oil incredibly rare earth materials such as silicon which on the scale that would be required to power the earth with solar is beyond feasible.

    This is why oil companies spend 40 billion dollars a year on anti-peak oil propaganda, if it was so fake and not to be concerned with, they wouldn’t care at all about it and would keep that 40 billion in their pockets.

  23. Buran says:

    @goodkitty: I want to know too.

  24. Dibbler says:

    Thanks a lot consumerist.com… My local gas stations mis-read your headline and thought it said “Gas Prices Could Rise By 20 Cents In The Coming Minutes” and raised their prices exactly 20 cents. Please run another headline for me that says “Gas Prices Could Drop By 2 Dollars In The Coming Weeks” Thanks.

  25. Buran says:

    @yg17: You can run 87 but you’ll lose performance, and the premium doesn’t cost that much more. Actually, I should run a tankful of regular and see how the 2.0T handles it with regards to economy. I’ve done it before but that was before I saw the 6K upswing in mileage (in other words, you’ll get lousy mileage until somewhere between 5 and 7L miles, then it shoots up to what the sticker says you should get).

    My current tankful is averaging 23.7 mpg right now. All that stop and go on 64 (I live in Brentwood, work just east of Forest Park) isn’t helping, and for some reason my alternate route of Forest Park Parkway isn’t letting the average tick up much yet.

    I really need to start writing down average and what brand of gas I used to see if there’s some correlation between a particular brand/formulation of gas and what I get — I DO try to drive gently.

  26. Lordstrom says:

    20 cents? Oh noes!

    Seriously, none of you are going to drive any less, so quit acting like it matters. I am praying for $5 gas. Maybe then traffic will clear up a little.

  27. jtheletter says:

    So what was the 20c increase in the last week that happened the moment that $90/barrel price was announced?
    Seriously, this is constantly occurring, we hear about oil reaching new highs in the news, guaranteed big price jump the next day at the pump, but wait, isn’t that processed gasoline from oil supplies purchased weeks to months ago at a lower price? Hmmm.
    And the reverse, a drop in oil prices, takes about a week or two to filter down to the pump prices. Amazing!
    THAT is the price manipulation that congressional investigations never seem to uncover somehow.
    Speculation in oil should be illegal. If you are not a manufacturer buying to produce something then you should be barred from the market.

  28. jeff303 says:

    @darkened: Actually a very large reserve was just discovered off the coast of Brazil (just do “Google search” for the story). All other issues aside, it’s preposterous to assume we KNOW about all the extractable oil left on Earth. Granted the easiest sources are going to run out first but as technology improves we will discover more. I’m not saying we don’t have a problem, just challenging your specific claim.

  29. Mojosan says:

    Actually, Oil has risen about $35bbl over the last few months with very little increase in gasoline prices.

    I drive a lot and in my area gas was in the $2.49 to $2.59 range all summer long and just in the last 2 weeks it’s gone to the $2.89 to $2.95 range.

    Thats a 37% increase int he price of oil with only a 13% rise in gas prices.

    Also, anyone hoping for $5.00/gal gas because “it will decrease the traffic” is a shortsighted fool.

  30. darkened says:

    @Jeff303 The issue isn’t the fact we’re out of oil, it’s the fact we’re out of easy to get oil. The “new oil” discoverys all require vast changes to way they’re drilled for whether it requires an absurd depth to reach it in the ocean, or the methods of extracting oil from tar sands or shale oil. The issue is these oils require substantial energy usage (which directly is money) to be able to produce viable oil. This is why oil will continue to climb in price.

    The huge gasoline shortages that rocked the late 70s or early 80s? was due to a 5% dip in production, which went the market out of control. The underlying theory of peak oil is the growth of the demand for oil is raising at such a constant rate that is (or is set to) greatly exceed the ability to meet the rate of demand. Those problems stemmed from a momentary dip of 5% production less than demand, peak oil is the growth of a permanent difference in demand and ability to produce. Economists have put that number to be any where from 5-13% i believe less production than demand which is why price will become the stabalizing factor since the most basic law of economics price is inversely proportional to supply and demand. ie for a growing demand from the same or lessening supply the price will grow to meet an equivalent ground.

    This is where economists have applied math that points oil could eventually reach a balancing point of $700 a barrel. Price of oil isn’t exactly the link to price of gas but it’s easy to see if gas is $3/gallon at $100 a barrel, what would happen if oil cost 7 times as much, or even 2 or 3 times as much. The damage this would cause isn’t a disaster to regular transportation, it’s the fact it would expontentially increase the cost of trucking which is the source of all the goods in our country. Which would cause massive inflation in prices and huge deflation in the value of money.

    You can say this is tin foil hatish but there’s a reason gold value is so high and it’s not just due to the dollar losing grounds, it the fact that no matter occurs gold is and always was and will always be a universally accepted currency. I really hope that economic collapse over peak oil is all tin foil hat paranoia but if it’s not heh. That’s why my current life goal is to be able to provide myself with an energy producing home, most likely with wind power that i know no matter what happens i can depend on having some electricity.

  31. darkened says:

    And on the positive note if none of that turns out to fruitation I have a home that will cost nothing or near nothing to power and will be very good for the enviroment.

  32. synergy says:

    Hmm, I just filled up 4 days ago at 2.869/gal. Sucks to be wherever it costs 3.109

  33. Skiffer says:

    @darkened: Ya gonna grow tulips to go with your windmills?!? What are you…Dutch?!?

    Two words:

    Nuclear hydrogen
    [www.ne.doe.gov]

  34. Notsewfast says:

    @darkened:

    As much fun as conspiracy theories are, I highly doubt that the ‘green movement’ is a scam thought up by the oil companies. If Ed Bagley Jr. is on Exxon’s Payroll, I’d be amazed.

    In the long run, oil supply will dwindle, and if prices get too high, the market will respond by buying less expensive (and presumably greener) energy sources. But as a wise man once said “In the long run, we are all dead.”

  35. StevieD says:

    Rising and volatile gas prices are wrecking havoc on the price of raw materials (clay, iron, coal, wood etc) and subsquently on low cost products. The biggie in this whole equation is the transportation costs of the materials. The cost of a truck load from one of my key manufacturers has risen nearly 23% this year. The mileage rate has remained the same, the fuel surcharge is causing the increase. And that is just the cost of shipping the goods from the factory to me. The factory is also paying more in transportation costs to get the raw materials to the factory make the products. At this point the manufacturer is predicting that they will accelerate their annual price increase from May to January and the the rate of increase will be 6 to 7%. By time I adjust for my transportation costs, we could see a wholesale product price increase of nearly 8%. By time we factor the shipping costs to the resale-dealers, it is possible that consumer prices could increase by 10%….. all due to fuel costs.

  36. Grrrrrrr, now with two buns made of bacon. says:

    Remember all of those smug businessmen and politicians that always say “We don’t need the government to step in because the market will determine the price!”

    Well..guess what…the market is determining the price.

    Not only will the price of energy go higher because it’s in high demand, but commodities traders are sucking up gasoline futures today that they can sell for 50 cents more a gallon two weeks from now..so again..there’s your market. Wall street traders pushing the price even higher than it has to be..but hey…the economy is doing well and the rich are getting richer, so things must be okay. What? You’re not invested in the market, you say?

    Of course, there’s never any inflation, because economic forecasters always conveniently put a disclaimer in (*not including the food and transportation sectors). But hey, really, who has time to buy food or gasoline when you’re plotting your next hostile takeover?

  37. mthrndr says:

    @darkened: Dude, what a ridiculous post. $700/barrel is theoretically possible but untenable. There are other technologies that are cheaper (hydrogen production @ ~$3 to $4/kg) and produce more energy. Human civilization has been decarbonizing naturally for centuries; we will continue to do so when the price is right.
    And may I remind every one that in the early 80s the price of gas, adjusted for inflation, was higher than it is now. In the early part of this decade, gas was around $1/gallon. Now, due to the oil futures market and the woeful state of our refineries, it may never get that low again. The current pricing model began with Katrina and has been screwed up since. But it will eventually get quite a bit lower than it is now. It always does.

  38. derobert says:

    @darkened: When pretending to know what you’re talking about on the Interwebs, it helps to avoid saying lines like “incredibly rare earth materials such as silicon” because someone might be tempted to ask Wikipedia and find that silicon is over one quarter of the earth’s crust.

    More importantly, green technology != photvoltaic cells. The sun can heat water and turn turbines, for example.

  39. derobert says:

    @dwayne_dibbly: Food and transportation are excluded from core inflation due to volatility: they go up and down rapidly for reasons having little to do with inflation. Whether you look at the headline inflation or the core inflation depends on what you want to know.

    If you had bothered to even Google for CPI you’d see that both rates are reported.

    PS: If you feel there are such great profits to be made in the oil futures market, I suggest you rectify your absence from it immediately.

  40. mconfoy says:

    Go up more. We need higher gas taxes also. There is a very good reason that Toyota has fought the proposed mileage increases that they meet today but would not be fully in effect for 10 years I guess it is? SUV and Humvee prices are dropping, come on people, buy them. Its good that OPEC and especially Chavez can have us by the balls. Just because most of the 9/11 gang came from Saudia Arabia, hey so does our oil.

  41. mthrndr says:

    @mconfoy: I’m going to assume your first language is not English because this post made almost no sense.