What Will Gas Prices Be In 2010?

What level might gas prices reach this year? In many areas of the United States gas prices are now approaching three dollars. The last time gas prices were this high so early in the year was in 2008. We all remember that the summer of 2008 saw gas prices at and even above $4.00 per gallon. Normally gas prices are lower in the winter and rise in the summer. If that pattern holds true in the year ahead, we could be in for another year of very expensive gas.

Although many people were thinking about or taking action to reduce their gas usage in 2008 at the time of high prices most dropped off the bandwagon when gas prices came down again. However, the fundamental reasons for expecting high gas prices have not gone away. What we are seeing is a typical bumpy market response to the situation. Financial markets are supposedly ever so effective, but in reality they do a poor job of providing satisfactory outcomes to the typical person.

Anyway, we are probably going to see a sawtooth pattern of gas prices rising and dropping over the next few years. This up and down will hide the pressures responsible for the long term rise in prices until it is too late. The best response is for all of us to begin to save on gas for the long term right now.