Rising Prices At The Pump

In the last couple weeks, gases prices have been slowly making their way to the $4 mark for the first time in 3 years. A survey showed that the national average for gas was $3.77 and that the average of some states including California, Hawaii, and Alaska had already surpassed $4. Even though the average is almost a dollar high then it was at this time last year, economic data has yet to be burdened by the strain of high gas prices; however, economists believe that “the pain will become more palpable” (Hauser) when we top $4 nationally. While we have yet to see much severe damage to the economy from the increase in prices at the pump, consumers are still driving noticeably less as prices inch their way higher, and most economists believe that industries that depend on tourism and travel for revenue could start to feel the decline in driving over Memorial Day weekend and during the summer. Though it’s hard to see those high gas prices, the economy is stronger now than it was three years ago; the last time prices went up this much.

Prices started their ascent after political unrest swelled in the Middle East over the last few months. The price for crude oil reached its highest point since 2009 last week, topping $110. Now, as prices continue to soar, people will soon begin to feel the crippling effects. It’s true that after dealing with an increase in gas prices in 2008 more and more people bought fuel efficient cars (and that’s a lot of the reason why prices will need to get even higher than they did three years ago if we’re to feel the same strain), but it won’t take much more for the hardships to become substantial. Despite the increased strength in the labor market – and the economy as a whole – people still don’t have the pliability in their budgets to make it through this unscathed should prices continue to rise.


--Emily