MIAMI (CBS4) – Gasoline prices above $3 a gallon are expected to be around for awhile as demand increases. But, the former president of Shell Oil now says that Americans may end up paying $5 per gallon by the beginning of 2012.
Other oil analysts told CNNmoney.com that gas prices will hit $5 a gallon in the next decade, but not by 2012.
Gas prices have been rising in the U.S. for weeks and crossed the $3 mark for the first time last week since October 2008. Gas prices now are up 4% from November and 16% from 2009, according to AAA.
The Oil Price Information Service estimated that drivers will spend $305 on gasoline in December and prices are up nearly 14% from last December, according to CNNmoney.com.
The spike in gas prices have closely followed a rise in oil prices which are hovering around $90 per barrel. Prices dropped slightly Monday after China raised interest rates.