With gas prices slowly rising above $2 per gallon, it’s hard not to wonder if we will once again see prices spike to the unbearable $4 per gallon that we saw less than one year ago.

There is no need to fear a $4 per gallon price this summer said Ben Brockwell, director of the Oil Price Information Service during the Wisconsin Petroleum Marketers and Convenience Store Association conference on Tuesday.  Brockwell said that businesses and consumers are using less fuel because of the push for conservation during the peak of high oil prices.  In addition, Brockwell said the rise in unemployment has created less demand for gasoline and has helped to keep the low prices at the pump.

Gas prices have slowly been on the rise since the beginning of December when the average price for a gallon of unleaded in Wisconsin was $1.72.  Many economists believe we will see prices rise slowly above the current price of $1.98, but the chance that we will see anything close to $4 in the coming months is quite unlikely.

Reduced demand is not only occuring  in the United States, global demand has seen a decrease helping to keep prices lower at the pumps worldwide.   “We have plenty of crude and plenty of spare refining capacity. Plus we are seeing global demand for gasoline slow as well,” said Phil Flynn, an analyst at Alaron Trading in Chicago.

CNN released a video at the end of 2008 describing the process of oil to gasoline and how prices are affected based on the decisons by the oil companies.

One factor in keeping the prices low was the increased sales of hybrids over the summer months of 2008.  Many Toyota dealers were unable to keep the popular Prius model in stock, and many had waiting periods as long as 4 months for those interested in the car.  Sales have recently dropped with the Prius and the Japanese government is now offering to pay incentives to customers for bringing in cars older than 13 years when they buy a new car from a Japanese firm.

If consumers remain conscious about their decisions reguarding fuel use and try to use less when it is possible, gasoline prices should remain at much lower levels this summer in comparison to a year ago.  Brockwell noted, “The price of oil eventually will go back up, but I think that’s a year or more away.”