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Saturday, January 7, 2012

2012 Could Have Record High Gas Prices

Did you spend more on gas in 2011? There were no record breaking gas prices at the pump. In 2008, we saw $4 a gallon prices here in the US. However, if you felt like you spent more on gasoline last year, it is probably because you did.

In 2011, gas prices did not follow their traditional seasonal price fluctuations. This means that you didn't get the budget relief in the fall that we normally see.
US Average Gas Price from Gas Buddy.com
Looking at 2008 in the chart above, you can see that prices spiked in June and July; however, they dropped sharply in September. By November 2008, you could buy gas for less than $2 per gallon in many parts of the country. In contrast, during 2011 gas averaged over $3 per gallon for the entire year, while peaking at $3.96 in May.

Given this, 2011 has the (dis)honor of being the year with the highest annual fuel cost that we have ever had in the US. Welcome to a glimpse of the prices that the rest of the world has been paying for some time now.

Historically, January is one of the cheapest months of the year for gas prices. Given at we are starting this year with an average price of $3.25, 2012 could easily have $4 prices this summer, causing you to put more money in your tank, leaving less for a new phone, savings, and the rest of your budget.

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