Gas prices to soar

The price of gas will soar to $2.25 a litre over the next five years as global oil supplies continue to deplete, says Jeff Rubin, chief economist with CIBC World Markets in Toronto. “Whether we have already seen the peak in world oil production remains to be seen, but it is increasingly clear that the outlook for oil supply signals a period of unprecedented scarcity,” Rubin said in a statement. “Despite the recent record jump in oil prices, oil prices will continue to rise steadily over the next five years, almost doubling from current levels.”

A growing car economy in regions including Russia, Brazil and China has boosted demand for oil, Rubin said. India’s mini-car, the Nano, which is set to sell for about $2,500, is also expected to significantly bump up demand for gasoline. The national price average of a litre of gas reached $1.23 today.

The silver lining to Rubin’s report is that skyrocketing fuel prices might encourage drivers find ways to leave their cars at home more often and opt for greener, less pollution-spewing transportation solutions.

source