The Selma Times-Journal

As local residents welcome in a new year, rising gas prices are not so welcome.

Analysts at the Oil Price Information Service have voiced the possibility that gas prices may reach $4 a gallon in 2008.

A national spike in gas prices last week have bumped local prices up a few cents on average at gas stations around the city, bringing the city average to roughly $2.97 as 2007 comes to a close.

Local gas stations reported a range from $2.89 a gallon to $3.04 a gallon for regular unleaded fuel.

Gas prices had gone down in recent weeks, following decreased demand for oil that brought prices away from the $100-per barrel mark. Retail gasoline fuel prices averaged $2.98 across the nation last week, and the regional average for Alabama, Georgia, Mississippi and Florida was $2.83, a drop of two cents from the week before. In Montgomery, the average came in less than the regional average at $2.82, according to montgomerygasprices.com.

By the end of last week, average prices were reported at over $3 a gallon across the nation, prompting concerns on what the spike bodes for the new year.

An Associated Press report Dec. 28 cited oil futures investors-who essentially buy thousands of barrels of oil in shares, based on speculation of future value-and the weakening dollar as reasons why oil prices have been on the rise, and why they may rise even higher in the near future, leading to higher retail gasoline prices.

Gas prices in the spring were predicted to rise to anywhere from $3.40 to $3.75 per gallon, according to the AP report.