Gas prices inching up again
Mon, 21 Feb 2011 22:15:49 GMT —
Since just last Friday, gas has jumped from $2.99 to $3.09 a gallon in some Amarillo locations, and experts say it will probably go higher before it levels off.
Nationally, we're being told gas may hit $3.50 a gallon by the summer driving season, so the worst may be yet to come.
Crude oil is inching toward it's record highs of a few years ago, and we may be seeing that trend again not exactly good news for consumers.
"So, if crude oil prices and energy products, particularly gas and other forms of transportation fuels, were to skyrocket, but particularly during our fledgling stage of the recovery...yes, it could cause us some problems," notes Economist, Karr Ingham.
A year ago, the national average was at $2.65 cents a gallon. Today it stands at $3.17.
The high gas prices are also effecting the cost of everything from groceries to coffee, as the cost to ship those items increases.
Roasters here in Amarillo is also feeling the effects of those increases, from the cost of shipping coffee, to the cost of plastic lids and syrup, it's all costing owner Craig Gaultiere three to four times what it did just a few years ago.
"A pallet of coffee beans was $113 a few years ago, that same pallet costs more than $400 now to ship. You can either increase prices or cut profits."
As you know those costs are usually passed on to the consumers, which means Gaultiere may not be alone when it comes to making decisions about spending.
"The guest who used to come in here five times a week, now is only coming in three times a week."
Whether the increasing consumer prices will lead to a double dip recession as talked about in the national media only time will tell, as inflation numbers continue to come in.
"I'm really nervous about what the future holds with inflation. I'm not the only one, restaurants, businessmen, the profits have evaporated," said Ingham.
When will you say enough is enough when it comes to how much you will pay at the pump? Weigh in with our web poll below and leave your thoughts in the comments.