Gasoline Prices Inch Past $4 in Six States

The national average could reach $4 a gallon by late April or early May.

March 21, 2012

WASHINGTON - Three more states joined the $4-per-gallon global group this week, according to the U.S. Department of Energy and AAA.

Although the average cost is still hovering below the $4 price tag, at least six states are averaging $4 or more per gallon of regular gas: Alaska, California, Connecticut, Hawaii, Illinois and New York. Oil-price experts predict that the national average will top $4 per gallon by late April or early May, close to the record high of $4.27 set in 2008.

During his weekly radio address on St. Patrick??s Day, President Obama said Congress should nix tax breaks enjoyed by the oil and gas industry and push that sector to invest in alternative energy sources, the Associated Press reports. Over the next few weeks, the president wants Congress to look into removing the $4 billion in tax subsidies. "They can either place their bets on a fossil fuel from the last century or they can place their bets on America's future," said Obama.

Obama has faced increased criticism about rising pump prices. "If we're truly going to make sure we're not at the mercy of spikes in gas prices every year, the answer isn't just to drill more because we're already drilling more," he said. During this week, the president will visit Oklahoma, Ohio, New Mexico and Nevada to talk about his administration??s energy strategy.

With both Democrats and Republicans pointing fingers about what is causing higher gasoline prices, the topic will likely continue to be a part of this election year. "Every voter is affected by the price at the pump," said John Eichberger, a NACS spokesman, in the Louisville Courier-Journal. "Every politician is going to try to capitalize on what they would do if they had the ability to make changes."

Last week, a Gallup poll revealed that close to half of Americans would slash their spending significantly if pump prices reached $5 per gallon. On average, Americans felt that $5.30 to $5.35 per gallon would be a "tipping point" that would trigger cutbacks.

NACS Day on Capitol Hill attendees are in Washington, D.C., this week and are taking the opportunity to discuss the retail motor fuels market with their members of Congress. For more information on market dynamics, view the resources contained in the NACS Retail Fuels Report.

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