Gas Prices Could Hit $3 By Summertime

Gas could cost $3 a gallon by summertime.

That's the prediction by, which says the jump could be 35 to 75 cents by May.

The price-watching service says fuel prices have essentially hit bottom, and will head back up this spring – reaching $3 in some major cities.

One reason for the expected jump in gas prices is that refineries are making the switch to the costlier summer blend.

Another factor in the uptick is the oil rebound. Oil economist Tim Snyder of Matador points out that world oil prices have double since February of last year.

As prices go up, drilling increases, too -- especially as investors see new opportunities, such as those offered in West Texas.

The gas price average in Houston is $2.09 for a gallon of regular Unleaded fuel, according to the AAA Texas Weekend Gas Watch. That price is 58 cents more than the same time last year.

Higher gas prices aside, the Texas economy as a whole benefits from a stronger oil market. Market watchers say because of that, the Permian Basin oilfields are gaining investor interest

Oil and gas entrepreneur Charles “Charlie” Matter tells NewsRadio 740 KTRH that the Permian Basin area has attracted fresh capital as the oil market improves.

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