Gas prices high into the new year - KTTC Rochester, Austin, Mason City News, Weather and Sports

By Heidi Wigdahl

Gas prices high into the new year


ROCHESTER, Minn (KTTC-DT) -- You may be digging deeper into your pocket. With gas at $3.05/gallon many are wondering what the new year will bring for gas prices.

This is the highest national average since 2007. Gas is up 49 cents up from last year, and it's likely it will stay in this range. According to the U.S. Energy Information Administration, through the U.S. Department of Energy, prices are projected to stay around $3.00 into 2011.

This year we saw a reversal pattern, with gas going up during labor day instead of down. The national average rose about 30 cents per gallon since labor day, which is the largest increase EIA has seen since they started recording the data back in 1990.

EIA says the main reason for the increase in gas prices is due to the cost of crude oil and the higher demand for it. Crude oil is also up at $85.85, $6.00 higher than last year. The EIA say oil prices are uncertain but it should increase about $4.00 at $89.00/barrel by the end of 2011.

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