INDIANAPOLIS -- The price for a gallon of regular unleaded gasoline in the Indianapolis area is nearing $3 a gallon at several stations on the city's south side, with jumps likely at other stations Thursday.

At several Speedway and Marathon stations in Greenwood and Indianapolis, gas hit $2.99 a gallon as supply fears drove the price of oil up. Experts said gas inventory is not what it should be as the summer vacation season approaches.

Oil is trading at about $65 a barrel. Analysts said $4-a-gallon gas is not out of the question in the U.S. heartland this year.

Prices exceeding $4 a gallon are already on gas station signs in the San Francisco area.

The cheapest central Indiana price reported on IndyGasPrices.com Thursday morning was $2.65 in Franklin. The site tracks gas prices in the area.

6News also saw regular unleaded gas being sold at $2.65 per gallon at a south-side Indianapolis station Thursday afternoon.