US Gas Prices Hit $3.00

By Robert Davis
Dec 26 2010

The US national gas price average topped $3.00 today as travelers hit the road to visit loved ones for the holidays.

The last time that gas prices were at $3.00 per gallon was 2008 as the gas price and the price of crude oil started to slip. However, the price has been steadily increasing over the past several months and the price of gas finally hit the milestone that was the starting point for $4.00 per gallon gas.

Analysts are afraid that if the price of gas once again reaches those previous records that the economy would suffer another dramatic downfall. The record high gas prices were the first stumbling block for the US economy as businesses closed their doors and companies laid off hundreds to fight off the rising costs.

Crude oil speculators are expecting the price per barrel to hit $125 again this coming summer. This was the exact high point for the last run on crude oil and this was the time when the price of gas began to reach new heights.

However, fear and speculation in the market combined with the OPEC pricing system means that the price of crude and gas can be controlled. When the price of gas hit its high point the demand for fuel dropped to nearly nothing in a matter of months. At this point the prices started to drop and the end of the crude oil price hike was close behind.

The federal government said that they will examine the new gas prices to determine a proper course of action.