Dude, where’s my car gas? Oil prices hit a new record today, major newspapers reported. The new price, 103.95 per barrel is slightly higher than the last peak set in April 1980, a time remembered for nightmarish gasoline lines and Middle Eastern trade embargos.

Unlike 1980, the prices today have been mounting steadily over the past six years. Demand for oil is constantly increasing in rapidly growing countries such as China and India as well as the US. Oil producers are unable to increase the supply fast enough to keep the prices down nor, it appears, do they want to. High prices translate into big profits for the major petroleum companies.

Another reason for the record is the low value of the US dollar, since oil prices are internationally measured in dollars. European oil consumers experience less of a shock than Americans while the euro is going strong.

Economists expect prices to remain high because production of oil is not increasing and the dollar is not going to rise in value any time soon. With summer almost upon us, we can expect a gallon at the pump to cost as high as $4.00 even though the federal government has a more modest estimate.

As a side effect of the hike, food prices are up as well, due to the increased cost of transportation. With American consumers beginning to spend much less than what the Federal Reserve would like, now looks like as good a time as any for an alternative energy infrastructure.

by Igor Kossov