Watch out: Here comes $4 gasoline

Prices were supposed to peak below $3 a gallon, but refinery problems, strong demand could push them much higher.

NEW YORK (CNNMoney.com) — Gasoline prices, already above $3 a gallon in some states, could charge higher this summer and hit $4 a gallon in some locations, according to one industry expert.

Pump prices were supposed to peak below $3 a gallon this May, then drop off before the summer driving season got into full swing, according to the Energy Department’s price forecast.


Well, we’re not even out of April yet, and the nationwide average price for a gallon of unleaded regular has hit $2.87.

One big factor driving prices: gasoline inventories continue to fall. After a promising one-week boost in refining activity, the latest report Wednesday actually shows refining activity falling. And demand is already soaring, before the summer driving season is in full swing.

CNNMoney.com