By now you’ve probably heard the rumor or the pundit on television say that by the time summer rolls around gas is going to cost $5 a gallon. According to CNBC.com however, that reality is more of a nightmare – something that may or may not happen.
In order for gas to reach the $5 a gallon price tag a couple of things need to happen. Over the last month, the average price of a gallon of gas rose $0.30 to $3.76, CNBC.com reported. In order for gas to hit the $5 threshold, the eight percent climb over the last month would need to increase.
What would fuel the percent increase? What else but the Middle East. Expects are split on what may happen between Iran and Israel, who’s growing tensions over Iran’s nuclear program have some beating the war drums. If Iran decides to stop production in any way, the price for a barrel of gas could jump and force the $5 a gallon jump.
So in reality it looks like the chances of $5 a gallon during the peak summer months is a roll of the dice.