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 the conflict over the nuclear program in Iran has led oil prices to rise.
US along with other countries is fearful that Iran, the world’s third largest oil exporter, is using the nuclear facilities to build a nuclear weapon. Iran has denied the charge but refuses international inspectors to take a look at the facilities.
US plans to move ahead with it 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 sanctions will be imposed 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, US and other countries are considering 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.