$4 Per Gallon For Gas? Experts Say That Will Likely Be The Price Before Summer's End (CBS) CHICAGO With the conflict in the Middle East escalating, gas prices are inching toward $4 per gallon. As CBS 2’s Holly Gregory reports, even though the price of crude oil dropped overnight Tuesday, a break in gas prices is not expected. With violence raging in Israel and Lebanon and higher demand for gas in the summer, $4 per gallon is a very real possibility.
Not too long ago, gas was only 99 cents a gallon, but prices have risen steadily in recent years. It was only a few years ago that prices of less than $2 a gallon were the norm.
Drivers are not the only ones feeling pain at the pump. Some mom-and-pop operators say they are selling gas cheaper than they are buying, and others say they are making as little as 5 cents per gallon.
But that is little relief to drivers who say they can barely afford to fill up their tanks.
“The prices are outrageous,” said consumer Betty Siciliano. “It’s ridiculous the way gas prices have gone up.”
Added consumer Kelly Williams: “(Prices) are sky high. They are too high; people are poor already and gas is so high.”
One gas station owner says he is focusing on his auto repair business because he does not make enough money selling gas.
Presently, the average price of regular gasoline in Cook County is $3.26. At the Shell station at Grand and Ashland, regular hit $3.45 on Tuesday.
Experts in the petroleum industry say prices are certain to hit $4.
"In the very near future … $4, no question about it," TGS Petroleum's Ted Spyropoulos.
One would think gas station owners are making a high profit.
"We aren't making that much money. We make probably about a nickel a gallon on the self-serve, and if we're lucky, about 10 cents a gallon on the full service," said Robert Werniak, owner of Bob's Auto Body and Repair in Blue Island.
Bob stopped selling gas after 40 years. He's now focusing on his auto body and repair business. He said competing with the big name gas companies as an independent just wasn't profitable.
"Half a truckload of gas is probably about $14,000. And we can only buy half a truckload at a time because we just couldn't afford that," Bob said.
Experts say more mom-and-pop gas stations will close in the future.
"A lot of people will be in bankruptcy. A lot of people have foreclosures because they can't even pay their mortgage," said Spyropoulos.
Holly Gregory. CBS 2's Suzanne Le Mignot contributed to this report.
CBS Broadcasting Inc.
