Gas prices dropped at a pretty good clip in the latter half of 2011 -- down around 20% to about $3.25. Hope you enjoyed it while it lasted, because gas is back on the rise. It's near $3.50 now, and the key trends all signal that it'll keep going higher.
This winter's weather is forecast to be milder than last year's, but many Americans will get a cold chill when they open their heating bills. Average household spending for the season will rise for natural gas and propane, and those who use heating oil will see their highest winter bills ever.
For the first time in months, retail gasoline prices have fallen below $3 a gallon in places, including parts of Michigan, Missouri and Texas. And the relief is likely to spread thanks to a sharp decline in crude oil prices.
The drop in gasoline prices has begun to accelerate, with the cost of a regular gallon declining almost 10 cents in the last month. At this rate, could prices drop below $3.50 in mid-September, after the end of the Labor Day driving season?
Most of the media coverage about gas prices lately is focused on the fact that they've fallen from an average of $3.98 to $3.58 in about two months. What's rarely mentioned is that the cost per gallon is still 30% higher than it was this time last year, when a gallon cost $2.75.
