Thursday, April 21, 2005

Record summer gas prices coming

US drivers will face record-high gasoline prices this summer, averaging roughly 20 percent higher than last year at $2.28 a gallon, according to an Energy Department survey released.
But while the increase price of gasoline will cost consumers billions in higher prices for everything from groceries to air travel and may encourage growing interest in fuel-efficient alternatives to big sport usefulness vehicles, few industry analysts expect it to dampen Americans' desire for summertime travel.
'But somebody said that 'I don't think we're at a point where people are going to start curtailing discretionary miles," ''As long as the economy isn't really weak, people are going to keep driving."
The bigger impact of gas prices is harder to see immediately. But it will be on overall consumer spending. Rising gas prices will help to slow the growth of consumer spending, which drives two-thirds of the US economy -- to 3.4 percent this year, from 3.8 percent in 2004.
This is an important event that influences many drivers, how do you think about this?

1 comment:

Anonymous said...

The cost of flying increases along with the cost of fuel. I have never had a problem finding a $200 ticket from somewhere in New England to Salt Lake City, Utah. Right now the cheapest ticket I can find is just shy of $400. So I would say that the gas prices are affecting all aspects of travel.