Despite heavy fall-off in demand, gas prices at the pump are still expected to reach $3 per gallon this summer, according to industry watchers.
As of Feb. 22, the AAA said the retail average price of gas nationwide reached $2.65 per gallon, even as crude oil prices remained slightly below the $80 per barrel mark.
Analysts said that fuel prices usually trend up at this time of the year as refiners begin switching over to more expensive summer grades. However, pump prices hikes have exceeded even those typical for that annual conversion.
While experts don’t foresee a return to 2008 prices that rocketed to $4 per gallon at mid-year primarily due to a sharp decline in miles driven crude prices are expected to remain high due to growing demand in China.