Get Ready for Higher Gasoline Prices by Spring

Analysts say U.S. motorists can expect to pay an average of $4.05 for a gallon of self-serve regular gasoline this spring and close to $5 by Memorial Day weekend. Gasoline prices are starting 2012 at the highest point ever because of high oil prices and brisk fuel exports. Several U.S. cities will see record average prices this spring.

 

Automakers See Future in Internal Combustion Engines

Fuel-efficient internal combustion engines were a significant part of many products unveiled at the Detroit show. Ford said its EcoBoost engine is getting fuel economies that approach hybrids while other automakers displayed fuel-efficient gas models that will achieve 35 - 40 mpg. Manufacturers are expected to continue to push various forms of electric drive for the long term although consumer response has lacked enthusiasm.

 

Diesel Sales Outpaced Hybrids in 2011

U.S. diesel sales grew by more than 27% in 2011, and auto industry officials predict another large increase in diesel sales in 2012 as the number of auto manufacturers add the technology to their product lineup. Diesels accounted for more than 3% of the U.S. automotive market last year, with all battery-electric, plug-in and conventional hybrid models combined generating just over 2%. Analysts caution the demand for diesels may not continue to outpace that for hybrids in 2012.

 

Slow Acceptance of Battery-Powered Cars

Sales of all hybrids totaled 274,927 in 2011, about 2.1 percent of the 12.78 million cars, light trucks and crossovers sold in the U.S. Proponents say the technology will need more time to realize the improvements in cost and range needed to become more directly competitive with the internal combustion engine while skeptics question focusing time and money on battery power with other alternatives available that include fuel cell vehicles and advanced diesel power.

 

Experts Predict Real Possibilities for Transportation Industry Growth in 2012

Transportation CFOs recently surveyed by GE Capital expect increased revenues and profit margins in their industry but are less optimistic about the U.S. and global economies. ATA chief economist Bob Costello said fears of a double-dip recession have gone away but anemic economic growth is probable. Trucking experts were less optimistic in their forecasts for GDP growth in 2012, calling for 1% to 2% growth.