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Posts Tagged ‘$4 gallon’

“No Silver Bullet” to Solve Gas Crisis, Says Obama

But new, high-mileage vehicles will help, insists president.

by on Mar.05, 2012

The President checks out a Chevrolet Volt at this year's Washington Auto Show.

There’s “no silver bullet” for bringing down fuel prices that have now topped $4 a gallon in some parts of the country, warned Pres. Barack Obama during his weekly radio address – though he insisted that the new, higher-mileage models being built by a resurgent U.S. auto industry will ultimately save consumers money at the pump.

While signs of an improving economy may be playing to the President’s advantage in recent weeks, political observers warn that fuel prices could be a critical factor in determining the outcome of the 2012 election – especially if, as some now forecast, gas hits $5 a gallon.

Tackling the News!

Obama’s GOP opponents have already picked up the cry.  Before dropping out of the presidential race last year, Cong. Michelle Bachmann insisted she’d bring gas prices down to $2 a gallon if elected.  Former House Speaker Newt Gingrich has made a similar claim in recent weeks – though, like Bachmann, he hasn’t discussed how.

Nonetheless, it is clear the Administration is concerned about the gas price issue – especially as it is facing the possibility that the cost of petroleum could surge if the war of words with Iran over that country’s nuclear program turns into a shooting war.

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Gas Prices Surge to $4

Is the $5 gallon on the horizon?

by on Mar.07, 2011

A gas station in Santa Monica, CA.

Motorists in several parts of the country, notably including Southern California, have seen fuel prices surge past the $4 mark, with many industry observers predicting the country could soon see costs surge past the record figures set during the mid-2008 fuel scare.

With the situation only getting worse in Libya, one of the world’s largest sources of petroleum, analysts are now speculating not just if, but when pump prices in the U.S. could tip the $5 mark.  Economists are also worrying what the rapid rise might mean to an American economy that still seems fragile after one of the worst recessions in more than half a century.

In the Know!

As of Friday, the Lundberg Survey found that U.S. fuel prices had risen 32.7 cents over the previous two weeks, to an average of $3.51 a gallon for self-serve regular.  That’s the biggest jump the American market has experienced since a 38-cent run-up between August and September 2005, according to the Lundberg Survey, which follows fuel prices in the continental U.S.  That prior record was the result of the damage done to Gulf Coast refineries by Hurricane Katrina.

“This time around, the damage comes not from nature but from people,” said Trilby Lundberg, referring to the Libyan crisis and the broader uncertainty about Mideast oil supplies as the democracy battle rages across northern Africa.

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