Gas prices to soar to $4 in April

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Travel analysts predict that gas prices will soar to $4 this month. Eleven states already have an average of $4 gallon, and four more states are likely to join them. There has been no significant change in the factors affecting petrol and gas prices. The imposed sanctions on Iran will continue to deter it from developing nuclear weapons. As long as the pressure on Iran continues, gas prices will continue to rise.

The national average gas price is expected to rise to $4.05 by mid-April. At this point, it may level off or start to fall. The average price could even go as high as $4.25 per gallon in late April.

Gasoline prices generally rise in spring as refineries switch to expensive summer blends that include additives to reduce pollution. The pump prices have also increased this year due to high crude oil prices that refineries have to purchase to make gasoline. The average price of gas has soared by 15% since 1st January 2012.

The concern that global oil supply could be tight due to Iran’s nuclear program’s conflict has led oil prices to rise.

Along with other countries, the US is fearful that Iran, the world’s third-largest oil exporter, uses nuclear facilities to build a nuclear weapon. Iran has denied the charge but refuses international inspectors to take a look at the facilities.

The US plans to move ahead with its imposed sanctions on Iran to curb its oil exports. It is held that there are other alternative and enough oil markets in the world for US allies to ahead with this plan without worrying.

The goal is to cut Iran’s Central bank, which processes almost all of Iran’s oil business. In this regard, the US will impose on foreign banks that continue to import oil from Iran from June. Other nations are trying to cut down on Iranian oil revenue through various sanctions and an embargo.

France, the US and other countries consider releasing emergency oil supply into the market to soothe prices. Analysts, however, state that releasing oil from national inventories and the U.S. Strategic Petroleum Reserve will only be a temporary measure.

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