Are High Gas Prices Here to Stay?

Chart of the Week for April 16-22, 2004

The national average price of gasoline has been rising steadily for months and causing concern for consumers. The average price per gallon of regular unleaded gasoline as of April 12th is $1.79, surpassing the record high level of $1.75. This is a 31.5-cent increase since mid-December and an 18-cent increase from this time last year. The chart above shows that gas prices have been close to this level two other times in the past twelve months. In March 2003, the Iraq war brought supply concerns, driving up prices. The July and August 2003 price spike was a result of multiple factors including: increased demand, low inventories, the Venezuelan strike and ongoing Iraq concerns. Does that mean we’ll see some relief soon? Analysts believe that these prices are here to stay for awhile, especially with the peak summer travel season right around the corner.

This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.

Investment information can change rapidly and the changes can be significant particularly in volatile markets. For this reason “as of”’ dates are provided for specific data where applicable. The information should not be considered current after the dates provided.

Please read both the current applicable prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights, investment objectives, risks and performance information. Investing in mutual funds and other investment vehicles involves risk, including possible loss of the amount invested. Investors should carefully consider the Fund's investment objectives, risks, charges and expenses before investing or sending money. The prospectus contains this and other information about the investment company. The Vantagepoint Funds are distributed by ICMA-RC Services LLC, a wholly owned broker-dealer subsidiary of ICMA-RC and member FINRA/SIPC. For a current prospectus, contact ICMA-RC Services, LLC.

The performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.