Analysts are predicting that prices will rise by 20 to 30 cents more a gallon. This means that prices will soon get close to $4 dollars per gallon around the Bay Area.
The Lundberg survey reports that gas prices in San Francisco and the Bay Area are the highest in the country. The dramatic surge in price is attributed to a couple of reasons: Crude oil topped out at a record $106 dollars per barrel just last Friday, also oil refineries are facing higher production costs - now they plan to pass on those higher costs to the consumer. With the country on the verge of a recession, consumers say this increase will hurt everyone.
"As soon as the gas price hits - I stop selling cars, when the gas price goes down - I start selling cars again. Without a car in California you can't do anything, you need to feed your family, you need your car - so it hurts," said Samir Sohail, car dealership owner.
According to the Lundberg survey, in just the last couple of weeks gas prices have jumped 10 cents. Right now, we are spending 64 cents more for a gallon of gas then just a year ago. One thing analysts are not sure of is how long we may have to pay these higher prices.