The price of gasoline is going up faster than usual and there's a 20 percent chance the national average will reach almost $6 a gallon, industry research firm IHS told the Chicago Tribune.
Only about 3 percent of a consumer's budget goes to gasoline, IHS chief economist Nariman Behravesh told attendees at a conference sponsored by IHS and the National Automobile Dealers Association, according to the article. "But here's the psychological art of it: They're seeing the prices every time they go to the pump."
Part of the reason gas prices have jumped so much lately is because oil supplies have been disrupted in Yemen, Syria and Sudan, Behravesh told the Chicago Tribune. Another contributing factor is the sanctions placed on Iran over its nuclear program. If Iran closes the Strait of Hormuz, gas prices could go up as much as $30 a barrel, according to IHS. Approximately 20 percent of the world's oil comes from that area.
Click to read the entire article at the Chicago Tribune.