Sales of hybrids and fuel-efficient vehicles are expected to continue rising as according to the latest Lundberg Survey, the national average gas price has hit $4 per gallon level for the fist time since July 2008.
The prices reached the threshold three weeks before Memorial Day, which kicks off the summer driving season, a period when gas prices are at their highest for the year. The U.S. Department of Energy said that on July 7, 2008, the national average price of gas increased to a record high of $4.114 a gallon.
The US Department of Energy is expected to announce the results of its weekly survey of diesel and gasoline prices this Monday. While there’s a lot of uncertainty in the market, a big factor is the high price of crude oil.
However, the $4 gas has already been in effect in other regions. Chicago has the most expensive gas at $4.50 per gallon. Its price in the city has been higher than $4 since early April. Meanwhile, the gas at Tucson is the cheapest, at $3.62 per gallon.
It’s believed that the $4 level plays a major role in the way US consumers perceive their buying power. It also has an effect on car sales too.
Demand is high for vehicles that offer high fuel economy such as the Chevrolet Cruze and Ford Fiesta. The hybrid market has also been heating up. A recent Consumer Reports survey found out that 92% of drivers want their next car to have improved fuel economy.