Even if the national average monthly gasoline price peaks near $3.50, there is a significant possibility that prices during some shorter time period, or in some region or sub-region, will cross the $4 per gallon threshold.
U.S. Department of Energy

In today's U.S. Department of Energy Short Tem Outlook, the DOE cautioned that gas prices could exceed $4.00 per gallon for short periods in some areas this spring.

In 2008, DOE predicts retail prices for gasoline will average $3.21 per gallon or 40 cents above the 2007 price. The monthly average gasoline price is projected to peak near $3.50 per gallon this spring. However, DOE said "even if the national average monthly gasoline price peaks near that level, there is a significant possibility that prices during some shorter time period, or in some region or sub-region, will cross the $4 per gallon threshold."

Tight fundamentals, reflected by low available crude oil surplus production capacity, combined with supply concerns in several oil exporting countries, have continued to put upward pressure on world crude oil prices. The outlook over the next 2 years points to some easing of the oil market balance due to increased production outside of the Organization of the Petroleum Exporting Countries (OPEC) and planned additions to OPEC capacity. However, delays to capacity additions in both OPEC and non-OPEC nations could alter the outlook, as could OPEC production decisions.

Diesel prices are projected to show larger gains in 2008, averaging $3.45 per gallon, or 57 cents above the 2007 average price. Diesel prices are expected average close to $3.70 per gallon for March and April.