Alabama drivers can expect gas prices to continue rising as warmer weather approaches, possibly reaching $3 per gallon.
“If it happens I don't think it will be by very much,” said Clay Ingram of AAA Alabama. “But it is definitely within the realm of possibility.”
The state average on Thursday was $2.71 per gallon, up eight cents in the past week and 17 cents in the last month.
Ingram said the higher prices are a combination of several things.
“At this time of the year, prices are going up naturally because it's spring and people are getting out more often,” said Ingram. “That increases demand. When demand increases, prices go right along with it.”
Ingram noted that there seems to be a little bit of optimism that the nation's economy is turning around. That creates investor interest in buying commodities with the hopes of buying low and selling high.
“Oil is also a good buy for foreign investors,” said Ingram. “Our dollar is devalued around the world. Crude oil is priced in dollars, which makes it a bargain buy.”
Crude oil prices are currently hovering over $80 per barrel.
Ingram said he believes gas prices will continue to rise through the spring season until Memorial Day in May.
“After that, prices should level out,” he said. “I don't anticipate any major spike like we've seen in the past couple of years.”
Alabama remains under the national average, which was at $2.78 per gallon Thursday.
However, prices in the state are $1.13 per gallon higher than exactly one year ago.
