Gas Price Jump Higher Again, Toward $5

The chance that trouble in Iran could press gas price for regular to a $4 average in the US increase by the day. As a matter of fact, The New York Times ran a front page story on $5 gas.

The paper’s report said

“If we get some kind of explosion — like an Israeli attack or some local Iranian revolutionary guard decides to take matters in his own hands and attacks a tanker — than we’d see oil prices push up 20 to 25 percent higher and another 50 cents a gallon at the pump,” said Michael C. Lynch, president of Strategic Energy and Economic Research.

Gas price increase have shown no sign of letting up. AAA reported the average cost of a gallon of regular nationwide was $3.73 yesterday. That number was $3.44 a month ago. The data is much, much worse in the country’s most populous state–California. There, the average price of regular is $4.33. The average price for a gallon of premium is $4.53. This adds to the burdens which have already done severe damage to the California economy. Its unemployment rate is one of the highest in the nation, and in some interior cities the numbers are in double digits. And, home prices in some of its cities have dropped by the most among the largest metro areas in the US.