Ford Hopes the 2011 Mustang Can Ride Out Gas Prices

U.S. gas prices are creeping toward $3 per gallon, car companies are promoting gas mileage for even the most unlikely cars. Consider the 2011 Ford Mustang.

At 412 hp, the newest-generation 2011 Ford Mustang GT could blow the doors off a lot of so-called muscle cars from the 1970s. Even so, it will get an estimated 17 mpg city/26 mpg highway. Not great, but respectable.

Whether go-fast Ford Mustang GT buyers care about gas mileage is a different question. That depends in turn on what happens with gas prices, which are headed up.

According to AAA, the national average for premium gas has already climbed above $3 per gallon, while the national average price for regular gas was $2.79. That's up from $2.62 a month earlier, and $1.91 a year ago.

Andrew Delmege, AAA manager of regulatory affairs, said that the underlying price of oil has been moving up and down in a range from about $70 to $80 per barrel, depending on seasonal factors and the latest economic news.

It's around the high end of that range now. Whether oil prices subside again depends on the outlook for the world economy. In the meantime, gas prices typically climb going into the peak driving season starting Memorial Day.

Delmage said simple supply-and-demand suggests that gas prices won't suddenly take off: "Supplies remain vast and demand, while improving, remains somewhat soft as well."

If gas prices were to veer to $4 per gallon, as they did in the summer of 2008, it's debatable whether even an exceptionally efficient, 26-mpg muscle car will keep its appeal.