Are you ready to pay $3.00 a gallon for Gas?

Looks like we are in for some spiking and shocking gas prices this summer:

The federal government reported yesterday that gasoline inventories had declined for the fifth straight week, maintaining upward pressure on prices.

It is going to be "another summer of very volatile prices, with $3 within reach," predicted Ben Brockwell, editor in chief of Oil Price Information Services.

The Energy Information Administration said that both formulation changes had the potential to cause "regional supply disruptions with periods of increased volatility."

The first hurdle is the phaseout of MTBE - methyl tertiary butyl ether - which has been added to gasoline in Philadelphia and certain other areas of the United States to reduce air pollution.

MTBE causes gasoline to burn more cleanly, reducing toxic emissions from cars. But it has come under fire for contaminating groundwater. Because the federal Energy Policy Act of 2005 failed to shield oil refiners from water-contamination lawsuits, and an increasing number of states are banning the substance, refiners decided to stop using it.

However, refiners must still meet clean-air regulations, and can do that only by replacing MTBE with another clean-burning component. Federally subsidized ethanol - which is also being touted as a renewable fuel that can help reduce dependence on oil - is the only viable choice, industry experts said.