New rules will push gas prices up 60 cents by July

By July gas prices will probably be about 60 cents higher than today due to new environmental regulations according to the article, Gas prices may surge on 2006 green rules.

"This ratcheting down of allowable sulfur adds to costs and also strains the refining system," said analyst Trilby Lundberg. "In 2006, the EPA could well cost gasoline consumers more than Hurricane Katrina did."

Other experts don't think the EPA measure will be as costly as Katrina - at least not by itself.

Since next year and the next couple of years are supposed to be equally as hurricane intensive as last year, another Katrina-like hurricane is very possible. Then there is China's growing gasoline consumption and the threat of terrorist attacks against U.S. oil interests.

Hence, without any doubt gas prices will be a good bit higher next year. How much higher will be dependent upon a number of factors, but the possibility of significantly higher gasoline prices is almost guaranteed.

Expect demand for hybrid cars to be even greater next year. The days of cheap gas are over.