AAA Says Gas Will Never Again Drop Below $3 A Gallon – Do YOU Agree?
As gas spends a record 1,000th day in a row at $3 or higher, AAA has made a prediction Americans don't want to hear.
AAA released a new report this week indicating a dubious record has been set for American fuel prices. Never before in our history has gas stayed at $3 a gallon or higher for as long.
When gas crept above $3 a gallon on December 23rd, 2010, few knew it would never drop below that mark again. AAA says the lowest price we've seen since that day is $3.01, which occurred on 12-23, and for a few days after that.
AAA says the average Americans family spent about 4% of their entire household income (before taxes) on fuel, or just over $2,900 - a national average. During this 1,000 day streak, gas prices hit $3.75 per gallon for 189 days, and $3.50 or higher for a whopping 643 days. In fact, during this stretch, gas was at least $3.25 national average for 913 days.
But what's more disturbing is AAA's belief that unless the federal government seriously pursues energy policies that provide more energy production, puts curbs on market volatility, and helps find more ways to make alternative energies and fuels more cost-effective, gas is likely to stay above $3 a gallon indefinitely.
These policies would include building more refineries, utilizing already discovered oil resources, and putting limits on commodity trading of oil. We've all heard how market speculation on oil can drive up the price-per-barrell, even if supplies in the U.S. are relatively good.
AAA utilizes data and information from over 120,000 gas stations and suppliers across the country on a weekly basis to monitor fuel prices and trends.