What gas prices mean to your bottom line

The average price of regular gas in Delaware hit $3.29 a gallon over the weekend – up 17 cents in the past week – to a new 28-month high.

So, exactly what are these escalating prices at the gas pump costing you? For the average two-car household, it’s about $333 a year for every 25-cent increase.

This is based on average family mileage per year at 11,619 for each of two cars at 17.4 miles per gallon, according to the US Energy Information Administration.

To put this in perspective, the Delaware gas average reached $3.00 a gallon back on December 6, 2010.  Today marks a 29-cent increase per gallon of gas or an additional $387 spent annually by motorists.

“Motorists are undoubtedly feeling the pain at the pump,” said Jim Lardear, director of public and government affairs for AAA Mid-Atlantic. “The uncertainty of the situation in the Middle East and its long-term affect on gas prices has many recalling the summer of 2008 when prices reached all-time highs above $4.00 a gallon.”

How high will prices go this time around? Lardear says it’s too soon to project where gas prices are headed long-term.

“But many analysts believe we’ll see $3.50 to $3.75 a gallon by early spring, and each additional 25-cent increase adds another $333 to annual gasoline expenditures.”