Price of gasoline in the U.S. could reach $5, says former president of Shell Oil

Article by Christian Andrei, on December 29, 2010

By 2012, the price of a gallon of gasoline in the U.S. could reach $5, according to John Hofmeister, the former president of Shell Oil, in an interview with Platt's Energy Week television. Hofmeister forecasted that gasoline prices will go up as the global demand for oil increases.

He said that the worst outcome will take place in the next two years and that it will signal the start of higher gasoline prices in 2012. But Tom Kloza, chief oil analyst with Oil Price Information Service, disagrees.

He believes that within the next decade, gasoline prices will hit the $5 a gallon mark in the next decade, but not by 2012. He pointed out that the demand is “still sluggish enough” in several of the mature economies. A steady increase has been observed in gasoline prices.

Last week, gas prices crossed the $3 mark for the first time since October 2008. AAA figures show that prices are higher by 4% from a month ago and 16% from the $2.585 average a year ago.

According to a study from the Oil Price Information Service, drivers will spend $305 on gasoline in December. The study also determined that fuel prices are up 13.6% from last December and 76% higher from December 2008. [via CNNMoney]

Topics: united states

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Off-road driving with an open air vehicle provides another kind of experience for many off-road enthusiasts and fans. For this sake, Ford is planning to offer a version of the...
by - January 16, 2017
For those who love driving, future autonomous cars should be like the Toyota Concept-i that is drawing in a multitude of visitors at the 2017 Consumer Electronics Show in Las...
by - January 15, 2017
Things are looking good at Rolls-Royce Motor Cars as the British luxury carmaker impressed by posting a six-percent jump in deliveries in 2016. Rolls-Royce’s 2016 deliveries of 4,011 units in...
by - January 15, 2017
British luxury sports car maker Jaguar is introducing a bevy of subtle updates to the 2018 Jaguar F-Type Facelift. However, these updates are so subtle that they are barely noticeable...
by - January 14, 2017
As far as Automobili Lamborghini S.p.A. is concerned, 2016 was a very fruitful year. This is all due to the fact that the luxury sports carmaker has delivered the most...
by - January 14, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries