I think it's safe to say that most of us have felt the pain from gasoline prices for a long time. For me, yesterday hurt worse than usual.

Rather than emailing me some horror story, one of my readers decided to send me a small article cut out from a newspaper. Naturally, the title referred to the outrageous price of gas. I simply shrugged and was about to toss it aside until I saw the price.

This article was complaining about gas being $1.80 a gallon!

It took me a moment to make sure I read it correctly. Then I realized it was dated over three years ago. I was tempted to call up the author and ask their thoughts about gas prices averaging $3.51 a gallon.

For the rest of the day, I tried to remember what it was like paying under two bucks a gallon. When I had to pull in to my local station this morning, I sighed after glancing at the reading $3.40/gallon. It turns out I was running on fumes, so my fill-up was probably my most expensive trip to the pump to date.

As I made my way into work, however, my mood brightened. Every station I passed on my way into the city was more expensive than the last. By the time I reached my parking spot, gas prices reached as high as $3.55. I know it's not too much higher, but I felt a little better.

Don't get me wrong, I feel lucky my gas is that cheap. I know some of my readers outside the U.S. are paying over $6 a gallon. Even inside the U.S., one of my readers in California commented on how she had to fill up her car for $4.30 this week.

Am I expecting to shell out over $4 for a gallon of gas by July?

Absolutely.

Gas Saving Tips

I usually reserve my personal gas saving tips for July, when the summer driving season is in full swing. Unfortunately, we don't have that much time. In order to keep your car fuel efficient, I've scrounged up ten tips you can use to squeeze every penny you can out of each gallon of gas.

• Restrain yourself from topping off at the pump.

• Check and replace your air filters.

• Keep your tires inflated.

• Car maintenance.

• Use cruise control.

• Don't drive aggressively (this includes speeding up and slowing down frequently on highways.)

• Drive at lower speeds to increase fuel efficiency.

• Don't let your car sit idle for long periods of time.

• Buying high octane gas is an unnecessary expense, unless your car requires it.

• Make sure to regularly check your oil.

Another Gas Hike?

A few months ago, I mentioned that oil prices were most likely heading to $120 a barrel. Now that winter is gone, I don't see any relief in sight. Remember, if oil experiences an increase similar to last year, prices could hit $140 a barrel by July.

So what's driving up the price of oil?

Well, it all depends on who you ask.

This week, the International Energy Agency (IEA) tried to help answer that question for us. Although the IEA admits there is "no single explanation for higher prices," they did argue that fundamental factors are to blame. In other words, global demand is growing and putting more oil on the market is getting harder.

At first, this sounds like the IEA is coming to terms with peak oil. They were quick to point out that the problems with supply growth are centered more on "above-ground" risks rather than field depletion and decline rates.

I don't think you need me to tell you what kind of effect that $140/barrel oil will have on our pump prices. And if this past winter was an indication of where crude oil is headed, perhaps $5 or even $6 per gallon isn't out of the question.

Until next time,

Keith Kohl

Energy and Capital

P.S. Let's face it, most of us have complained about gas prices at one point or another, no matter where we live. But soaring energy prices are providing investors with the opportunity of a lifetime. Most of my readers are already taking advantage of record oil and gas prices. I'd suggest checking it out for yourself at the $20 Trillion Report.