ABC 33/40 - Birmingham News, Weather, SportsPainful predictions made for future of gas prices

Americans may just be planning more staycations this summer because of the rising price of gasoline.

Predictions are we could see a record $4.25 per gallon by late April.  In the Birmingham area, gasoline rose a nickel a gallon in the last week.  It's almost 45 cents higher than it was one year ago and 20 cents higher than just one month ago.

"A lot of gas prices will be tied to the economy.   If we continue to see these improvements, gas prices will remain at elevated levels," said Patrick DeHann, with GasBuddy.com.

That could end up hurting the economy.  The fear is that we will pull back on other spending because of the price we must pay at the pump.

Another circumstance could make the situation even worse.  The Iranian government is thinking of extending an oil embargo on France and Britain to other European nations because of EU sanctions over its nuclear program.

Gas prices could also become a major election year issue.   Republican presidential hopeful Newt Gingrich made a bold promise.  He said he will make gas $2.50 a gallon if he's elected.  At the White House, the Obama administration is looking at ways to boost energy production here in the U.S.