Carol Thorp Price Quotations

We're in the time of year when steep price increases are common, but this year prices are being boosted by speculation about whether there will be sufficient gasoline supplies for later in the year. It may be several weeks before a clear picture develops on the nation's gasoline production, but in the meantime, prices could climb to near $3 per gallon.

Motorists have not seen the end of price increases. Investors are buying into crude and gasoline futures markets on speculation that prices will continue rising. Retail prices still have not caught up with wholesale price increases. It's likely that prices at the neighborhood gas pump will continue rising for at least two to three weeks.

Motorists can expect two to three weeks more of price increases that could send the average price of regular as high as $3.10 to $3.20 per gallon.

The speculators on the market are pushing the price up - they're worried about oil coming from Iraq, they're worried about what Iran could do to affect the price, they're worried about labor unrest in Nigeria.

The month-to-month gas price hike was driven primarily by increasing oil prices and speculation over adequate production. Higher gasoline and oil inventories have eased these concerns. However, when gas stations begin to sell the more expensive summer blend fuel in March, prices may start to increase again.