The Rise in Gas PricesFebruary 28, 2011 Marina Y Sanchez Freelance Columnist
Seeing the prices of the rising gas is enough to make you turn right back around and head back home. Seeing even the cheapest stations pricing gas at $3.29 is unfathomable. Believe it or not, it’s happening.
It’s very clear that the rising of gasoline is only going to do more harm to our already anemic economic recovery.
Well consumers who are in the market to purchase a new car may put on the brakes. But just as it did in the summer of 2008, when prices at the pump soared above $4 a gallon, the cost of gasoline may give car buyers reason to pause and cause vehicle sales to stall.
At a nationwide average of $3.29 a gallon, according to AAA’s Daily Fuel Gauge Report, filling up costs 22% more than it did a year ago.
When this occurred in 2008, consumers stopped purchasing new cars which contributed to the recession. Still, gas prices will have to rise a lot more — reaching the range of $4 to $4.50 a gallon — before consumers start thinking twice about buying new cars and trucks. They will have to stay at those high prices for a sustained period — a year or two, before automakers begin seeing a shift in buying habits. Nevertheless, it’s not quite secure to be dwindling at the edge like this.
High gas prices doesn’t just affect automotive sales and their stock prices. They also are forcing tough choices on small-business owners, who are to charge more for fear of losing cost-conscious customers.
Analysts and economists worry that by lowering profits for businesses and reducing disposable income for drivers, high gasoline prices could slow the recovering economy. It seems unfair just as we all were starting to get comfortable about the economy.
It’s very interesting that we depend on other countries for oil. There is much unrest in the Middle East and North Africa pushing the cost of crude oil into the $100-a-barrel range. So with the economy growth stunting, it could be less hiring and higher unemployment.
It it safe to assume that we all are unprepared for this sudden increase. The recession all took a hold on us everywhere whether it was through real estate or business. However, whenever we see the chaos overseas like for instance in the Middle East, we can expect such an increase in price.
We may understand exactly what is going on but it doesn’t mean we don’t like it.
All in all,we must do what we can to weather this storm. We might need to start making sure out car or trucks are in top condition to save as much gas as possible.
We need to check out tires. Making sure our tires are good condition gives an advantage of good gas mileage. Make sure we are regular in our tune ups and oil changes. When we run errands, perhaps we can try to combine them all at once and grouping them all in the same area.
However way we try to save out money, we must remember that it’s not just a group but all of us that are being affected. Hopefully we all can count on better days to come.