New Year brings pain at the pump

The New Year has brought with it higher gas prices and economists predict the cost will keep rising past $4 a gallon. Petroleum Analyst, Patrick DeHaan says, "It's not going to be a good year for gas prices in 2012, or for your wallet. It certainly will feel light."

Brace yourself for rising prices at the pump, we're only in January and the average is already $3.60 a gallon in Michigan.

DeHaan says, "Prices traditionally rise 93 cents a gallon between New Year's and the peak price."

That means prices could reach $4.50 when all is said and done.

The increase is being blamed in part to the end of a 30 year subsidy for ethanol and problems with Iran.

DeHaan says, "That has certainly pushed cost of crude oil and gas here in the last week, Iran, threatening to shut down a vital waterway that is very important to ship oil from the Middle East to the US."

From your morning coffee, to groceries, financial experts say the rising cost of gas will impact just about everything.

Dennis Brodeur, Vice President of Investments for Raymond James says, "Whether its business's shipping costs, commuting to work, consumers are going to have a tough time with already tight budgets."