US gasoline prices touch 26-month high during holiday season

Even as people decide to hit the road during the holiday, oil prices have touched a high not seen since October 2008, according to AAA.

Gas prices have been rising moderately over the past few months, but rose above $3 for the first time on Thursday, leading to speculation if these trends will continue.

The weak dollar, spurred by the second round of quantitative easing, is expected to have influenced some of the price.

However, the president of AAA believes that higher gas prices are not going to keep motorists off the road this season. Drivers are estimated to spend about $300 on gas in December alone.

While many experts do not expect these high prices to persist in the long-term, the current high prices could prove expensive for other retailers during these times of thriftiness.

Though household spending rose in November and consumer confidence also showed a rise during December, high gas prices might make people cautious to cut down their expenses again during 2011.

The U.S. government has been constantly pushing to popularize alternative forms of fuel and are considering corn-based ethanol, which is expected to also reduce greenhouse gases.

By 2022, U.S. fuel mix must include 6 billion gallons of ethanol and other biofuels, according to new laws.

Many major car makers in the U.S. are producing electric cars as oil prices shoot up and demand increases. Though U.S. will still remain one of the largest consumers of gasoline in the world, the dependence on gas will decline as alternate forms of fuel gain popularity, say recent research reports.