Gas Prices On The Rise As World Makes Economic Recovery

By Mario Trujillo

The national average for gas is hovering around $3.01 and could spike as high as $4 by the end of the year, according to a research associate at the Heritage Foundation, a right-leaning think tank.

The national average is 33 cents higher than it was one year ago as the U.S. climbs out of its recession.

“The biggest factor is the increased demand for oil as other countries, especially India and China, are emerging out of this global recession,” said Nick Loris of the Heritage Foundation. “It is really putting an increased demand on the use of oil and it is going to continue to do so as other countries emerge out of the recession. “

Loris said the decline of the dollar as well as declining supply, resulting from some companies in the U.S. switching from refining gas oil for home heating also contributed to the higher price.

Opening up on-and-off shore drilling in the U.S. could increase the supply and relieve the price, Lores said, but it would be difficult in the wake of the BP oil Spill last summer.