CNNMoney reports that gasoline prices are up 10 cents a gallon in the final week to $3.20 — up 25% from final year. When the summer driving season rolls around, I’m wondering whether gas will cost $4 a gallon — that’s $80 to fill up a 20 gallon tank.

Trilby Lundberg who conducts these price surveys says that prices would be even higher whether the oil refiners had not decided to take narrower margins. She estimates their per gallon margins fell 25 cents from where they were final year.

Moreover, she thinks prices in California and other high-priced markets could reach $4 per gallon “in the next few months, whether crude oil prices hold.” And with the Fed slashing interest rates, dollar-denominated oil prices should skyrocket.

I filled up my tank yesterday and felt lucky to find a

station that charged $3.13 a gallon. Most of the other places I saw were in the $3.25 to $3.35 a gallon range. Fortunately, or unfortunately, depending on your perspective, these prices are not making me change my driving habits. But I only drive about 200 to 250 miles a week, which means I burn through about a half to three-quarters of a tank a week.

Have you changed your driving habits due to these prices? Or have you cut back on other things?

Peter Cohan is President of Peter S. Cohan & Associates. He plus teaches management at Babson College and edits The Cohan Letter.

Original post by Peter Cohan

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