Gas Prices Hit New High: Here's How to Save

Economists in the government's Energy Information Administration are predicting that the national average for gasoline will top $3.50 by the end of spring. Some areas have already seen prices rise above $4 a gallon, but such levels aren't sustainable, says Tom Kloza, director of editorial content for the Oil Price Information Service, which tracks and analyzes petroleum prices. Drivers would greatly curb their gas usage before paying such prices. He anticipates that the national average price for gas will peak at $3.80 by May.

There could be some temporary relief as we head into the summer, says Brad Samples, a commodity analyst with Summit Energy Services, a Louisville, Ky.-based energy management firm. Coupled with other economic pressures, such as a slumping job market and the ongoing credit crunch, higher gas prices will keep cost-conscious consumers from spending much time on the road during the peak summer driving season. That drop in demand should help push prices back down to more reasonable levels for the summer months, he says.

In fact, consumers shouldn't expect any lasting relief on gas prices until next year. "When we look at the market outlook, we're looking at trends in world production and world consumption, and we don't see any good news on that front until 2009," says Tancred Lidderdale, a senior economist with the Energy Information Administration. Among those dire trends are rapidly rising crude oil prices, which also hit an all-time high this week. Demand from oil-hungry nations like China and India have pushed consumption to levels where it is outstripping supply. The EIA anticipates that new U.S. oilfields in the Gulf of Mexico, as well as production from Brazil and Russia, could add another 700,000 barrels by the end of the year. Unfortunately, that infusion may only serve to prevent gas prices from going any higher, rather than reducing prices at the pump, he warns.

With $3 gasoline here to stay, and higher prices on the horizon, it's more important than ever for consumers to curb their gas-guzzling ways and their costs at the pump. Here are some resources to help you do just that:

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