California Gas Prices to Hit $5.00 Per Gallon By Summer

U.S. Gasoline Price on the Rise

March 30, 2011

Press TV - The US state of California has witnessed a daily rise in gasoline prices during the past month, as the state continues to hold one of the nation's highest unemployment rates.

This week, the average price of gasoline in Los Angeles reached its highest average since 2008, climbing to $4.04 per gallon, a Press TV correspondent reported.

“Every time they hit one of these mental thresholds, going from two dollars on average to three dollars on average (per gallon), people are very frustrated for a while. But after a few months their behavior reverts back to what it used to be,” said Economist Suzanne Shu.

US energy analysts say gasoline prices are not expected to drop until the end of the current year.

According to Shu, Californians are accustomed to paying higher gasoline prices than the rest of the nation, even though their state has one of the highest rates of unemployment and foreclosures in the country.

Analysts also predict that gasoline prices will reach five dollars per gallon by summer time. The rapid increase in gasoline prices hits California before the state's refineries make the legally-mandated change to a more expensive blend of cleaner-burning gasoline.

Southern California's Automobile Club has placed the blame of such price hikes on commodity investors concerned about the current turmoils in North Africa and the Middle East.

A recent survey shows that nearly 81 percent of Californian drivers have started eliminating unnecessary trips in an attempt to save on gas.