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Gas Officially Over $4 a Gallon in 10% of the the United States

Five states now have gas prices that have topped over $4 a gallon, and the District of Columbia now sees the painful prices as well. With Obama doing little to help increase production to lower the cost, it's almost assured by Wednesday that number will drastically rise.

Drivers in Washington, D.C., on Saturday joined motorists in five states who are paying more than $4 per gallon for gasoline.

The average price for gas in New York could top $4 by early next week. Hawaii, Alaska, California, Illinois and Connecticut already have pump prices above that mark, according to AAA's Daily Fuel Gauge. Hawaii has the highest price in the U.S. at $4.47 per gallon.

The national average for gas has increased for 25 straight days, and is now $3.82 per gallon. Retail surveys suggest motorists are reacting to higher prices now by buying less fuel. Still, the government expects pump prices to keep climbing this summer as vacationers take to the highways.

The average price of gas rose to $4.003 per gallon in the nation's capital Saturday. The New York average is $3.996.


Things to watch: consumers will have less money to buy items needed to ensure our economy maintains its health, as well gas consumption in the United States will lower. This in turn will cause federal and state fuel taxes to go down, which will probably lead to the debate that Americans need to be taxed per mile they drive in addition to the federal fuel tax.

Detroit's Big Three's most profitable vehicles will remain on lots while owners of SUVs and trucks looking to trade them in will lose value in their vehicles as demand for bigger vehicles drops. This isn't very good news for the fragile Obama economy.