Gasoline hit record levels Tuesday - and experts say it will likely continue to soar in tandem with the skyrocketing price of crude.
The national average retail price for gas has risen 27 cents in the last month to $3.227 a gallon, matching the all-time high set on May 24, 2007, according to the motorist organization AAA.
And experts say motorists should prepare to pay nearly $4 a gallon - and in some places even more than that - before the price of gas finally comes down in the late spring as high prices crimp demand.
This article addresses the continued rise in gas prices, and this rise is expected to continue as the price of crude oil continues to rise. According to the article, gas buyers should expect to pay almost four dollars a gallon before they can see any decline in prices. The price of oil increased dramatically when the economy worsened and the Federal Reserve cut interest rates in an attempt to reverse the worsening state of the economy. This shows that many times we must pick our battles, and because the federal reserve took these steps to reverse the state of the economy to some degree, an aspect of our economy (the price we pay for oil) was raised. According to the article, gas prices must rise so that the producers will make a profit and continue to produce the oil. These prices show the true value of a dollar and the possibility of the severity of inflation.
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