Gas Prices: Auto Industry Needs a Solution in 2011

By Posted 7 Mar 2011, 11:04

U.S. motorists were unfortunately faced with a sudden increase in gas prices recently, which analysts say is due to the current situation in Libya. The average cost of regular gasoline in the U.S. has in fact increased by 33 cents a gallon just in the past two weeks.

As John Garcia over at abclocal.go.com recently reported, the price for regular unleaded has now become very close to the $4 mark at some pumps in Chicago, and many drivers have been left frustrated. One driver even described the recent increase as ridiculous.

Tim Shaw – who uses his van to take the Chicago Boyz Acrobatics team to their performances – said that it now costs about $100 to fill his tank, compared to around $80 a few weeks back. Motorists still have the usual early summer gas price hike to deal with yet.

The situation has even gotten the attention of both President Barack Obama and the Chief of Staff William Daley, who now claims that they are currently considering their options and tapping into the country’s emergency supply of petroleum is a possibility.

According to a recent article by Mariano Castillo over at cnn.com, the recent increase is the second biggest price hike in the history of the gasoline market. Lundberg Survey publisher Trilby Lundberg says that U.S. motorists should expect prices to continue increasing.

The recent Lundberg Survey sampled gasoline prices at around 2,500 different gas stations, with San Diego having the highest average gas price at $3.87 a gallon. The auto industry has got to see some sort of solution to the gas price situation in 2011.

You can view the latest news video below this post. Do you think the U.S. government should tap into the country’s reserve?

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