Sunday, April 17, 2011

5 States Above $4 per gallon gasoline, including Alaska

Connecticut, Illinois, California, Hawaii, and Alaska now average more than $4 per gallon for gasoline.

New York and DC are nearly there, with average prices of $3.97 and $3.99 respectively.

The national average is $3.82.

Alaska proves having a lot of oil locally does not mean low prices locally.  Alaska has a high cost of living, taxes oil and gas significantly, with former Governor Palin raising those taxes.  But the main reason that Alaska has $4 gasoline is that oil is priced globally.

And oil prices have increased about 40%, reaching the highest levels since the spring and late summer of 2008.  In July 2008 oil peaked at $147 and crashed to the low $30 per barrel as the nation hurtiled toward depression after the Lehman bankruptcy on September 15, 2008. 

The friday NYMEX price closed at $109 per barrel and Brent at $123. 

So will rising oil and gasoline prices create an energy shock that shakes once more our economy?  I will offer some thoughts in the next post.

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