Gas prices continue upward spiral

(PanamaNewsRoom)An earlier forecast said gas prices in Panama could hit $4 a gallon in 2011. If the current escalation continues that will be sooner rather than later.

New increases at the pump will be announced on Wednesday with indications that a gallon of 95 octane will rise 6 cents and 91 octane 5 cents. Diesel prices could shoot up 12 cents a gallon. The increases have raised fears of a further escalation in food prices and the cost of living.

The latest prices mark  the third increase this year, and the fourth successive rise since Dec. 18.

In Panama and Colón, 95 octane currently sells for $3.52 a gallon and 91 octane for $3.36. Prices are higher in the interior.

If it's any consolation, gas is cheap compared to Europe, but there you don't see  the streets jammed with oversized SUVs.