PRICE OF FUEL TO RISE IN ENGLAND - WHAT DOES IT MEAN FOR US?

"The cost of unleaded has broken the barrier in 267 forecourts already and the number is set to increase sharply over the next few days.

Brian Madderson, chairman of RMI Petrol, the filling stations’ trade body, said motorists will be paying 10 pence a litre more by the end of April because of the looming increase in fuel duty and higher oil prices on the world market.

By the middle of next week £6 a gallon – or £1.32 a litre – will be the norm across Britain, Mr Madderson added."
Telegraph

Realizing that fuel is always more expensive in Europe for a number of reasons, this is a harbinger of things to come here in America. Right now the exchange rate for the pound is 1.61 to 1 verses the dollar (that's a terrible thing in itself). This means at 6 pounds per gallon we're talking $9.66 a gallon in dollars. On a report I found on the net from the U.S. Energy Information Administration it seems the cost of a gallon of gas in England on February 2 of this year was $7.87. That means that English officials are forecasting a 23% increase.

The same chart says that U.S. averages were $3.37. A 23% rise in cost puts us at $4.14 a gallon. This is in line with most of the forecasts I've seen for price increases here in America based on the effects of the Libyan revolt.

Pray that this doesn't spread any further in the Middle East. These prices are getting dangerously close to the prices that caused our economy to collapse in '08. And it won't take quite as much to shove us over the edge this time.