Gas Prices May Be Near a Peak

Washington DC May 9, 2007; The AIADA newsletter reported that the nationwide average price of gasoline hit a near-record $3.054 Monday, and averages in 21 states and Washington, D.C., set records. What's more, $4 gasoline is likely a reality to some California drivers who use premium-grade gasoline. Motorists organization AAA says high-octane fuel averages about $3.90 in the state's expensive communities.

However, USA Today suggests that prices may be peaking. For one, refinery problems that caused a backlog of oil waiting to be turned into gasoline, are being fixed. Also, history says $3 doesn't last.

In 2005, the first time that barrier was crossed, it dropped below $3 the next week. Finally, wholesale prices of gasoline and oil dropped significantly in New York trading Monday.

That suggests investors foresee ample supplies for summer driving. But despite widespread complaints about high fuel prices, 41% of Americans told USA TODAY/Gallup pollsters over the weekend that no matter how high prices go, they won't trade for more-fuel-efficient vehicles.