Bay Area Gas Prices Highest Since 2008

SAN FRANCISCO (CBS/KCBS) -- As Bay Area gas prices increase speculation is heating up over whether we will soon be paying $3.50 for a gallon of unleaded.

Gas is at its most expensive price in more than two years and AAA spokesman Matt Skryja explained how market forces are at work when it comes to the region's prices.

"Overall what we've been seeing for the year is how the prices have been driven by how investors are looking at oil as a commodity to invest in," he said.

According to AAA the average price for a gallon of unleaded in the Bay Area is currently $3.28. That's an increase of 76 percent from December 2008.

Skryja warned not to expect a price break anytime soon.

"What consumers can look for in the short term are really not any huge price increases for the first part of 2011. However, after that, AAA analysts do expect the prices will go up."

Skrja said the possibility of Bay Area drivers soon having to pay $3.50 for a gallon of unleaded cannot be ruled out.

"That's always something that I think is out there especially since prices are continuing to trickle up," Skryja observed.

Most experts don't think gas prices will rise above four dollars a gallon for unleaded.

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