Gas to guzzle more cash in 2008

by John Reid Blackwell
Published: January 9, 2008

Be prepared to park more money in your gasoline expense budget for 2008.

The typical household in Virginia could spend about $332 more on gasoline this year than last, according to calculations by AAA Mid-Atlantic. But that’s only if gas stays at yesterday’s price for the rest of the year—an optimistic thought considering some predictions.

The average price for regular, self-serve gasoline in Virginia was $2.95 per gallon early yesterday, according to a survey of 3,220 Virginia retailers by AAA Mid-Atlantic, a motor club.

Don’t expect any relief at the pump soon. Prices are heading above $3 per gallon, and with crude oil rising above $100 per barrel yesterday, prices are likely to hit $3.10 per gallon within days, said John Zehler Jr., a local petroleum distributor who closely follows oil markets.

“I can’t rule out $3.25,” he added.

Cold weather and political unrest in the Middle East and oil-producing Nigeria are contributing to higher prices. “Certainly in the short-term, foreseeable future, there is nothing on the horizon that would indicate to us that gas prices are going to drop dramatically,” said Martha Mitchell Meade, a spokeswoman for AAA Mid-Atlantic.

So buckle up for budget safety.

“What we’re trying to do is make sure that families realize the impact of sustained high gas prices on their annual budget,” Meade said.

What Americans spend on gasoline during a year depends on many factors. AAA Mid-Atlantic, for instance, estimates that the average household adds 23,100 miles to odometers a year.

AAA Mid-Atlantic said yesterday that a typical Virginia household could spend $835 more on gasoline in 2008 compared with 2007. That estimate is based on the average price of gas in Virginia yesterday, compared with the average price of $2.22 per gallon on Jan. 2, 2007.

But one thing is sure. Americans are paying more now than 10 years ago on gasoline.

AAA Mid-Atlantic records show that monthly prices in 1998 averaged $1 per gallon in Virginia. That’s a yearly cost of about $1,143 per household.

In today’s dollars, that equates to $1.29 a gallon and $1,474 per year. That’s fuel for thought.

Contact John Reid Blackwell at (804) 775-8123 or .