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$5 Gas

$5 Gas - The former president of Shell Oil thinks so—he predicts gas prices will continue to spike as the global demand for oil increases. John Hofmeister said that Americans could be paying $5 for gas by 2012, although he added that he was just predicting “the worst outcome over the next two years which takes us to 2012 with higher gas prices.”

Tom Kloza, chief oil analyst with Oil Price Information Service concurred with Hofmeister that a $5 national average was possible—but not so soon.

$5 Gas

“I agree with him that we’ll see those numbers at some point this decade, but not yet,” Kloza said.

Gas prices are the highest they have ever been in December, 76 percent higher nationally than they were in 2008, which was the last year that the national average for gasoline was over $3. Gas prices crossed the $3 mark last week for the first time since October 2008. The Mountain West has largely managed to avoid the $3 trend, as Utah, Colorado and Wyoming are currently topping the list of the cheapest states in the nation to gas. Utah and Colorado are the only states to still average below $2.80, with a $2.73 and $2.76 gas average respectively.

$5 Gas

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