The pain of $4-a-gallon gas is spreading
This tipping point is already hitting the country's most populated areas. As gas prices surge, some consumers may cut spending in other areas.
A tipping point has hit some of the country's most populated areas: the $4 gallon of gas, which is digging into the pocketbooks of consumers in New York, California and Washington, D.C., according to the Automobile Association of America.
While painful for consumers, high gas prices may also spell trouble for the still-recovering economy. At $4 per gallon and higher, almost one-third of consumers say they're forced to make "significant cutbacks" in spending, according to a 2012 Gallup poll.
February's price jump has been unusual, given that drivers typically take to the roads less in winter, leading to lower demand for gas. But refinery shutdowns have resulted in tighter supply, which is driving up prices.
Unfortunately for consumers, it's likely that more parts of the country will soon feel the $4 pain, despite a break in the rising streak.
That's because fuel prices typically rise in March and April, as weather improves and drivers take to the road again. Peak prices this spring might approach the highs seen in 2011 and 2012, AAA noted in a Feb. 19 blog post.
The worst-hit cities are in California, with Santa Barbara residents paying the highest prices in the country: $4.36 for a gallon, according to GasBuddy.com. Other hard-hit towns include Honolulu, where a gallon costs $4.27, and New York City, where drivers pay $4.06.
The higher costs are taking their toll on consumers, according to the National Association of Convenience Stores (NACS), which represents the convenience and fuel retailing industry.
Almost one-quarter of consumers who buy gas are "very pessimistic" about the economy, up from 18% in January, when fuel prices started climbing, according to the NACS Consumer Fuels Survey.
"[C]onsumers are feeling the pain from higher gas prices and this is affecting their feelings about the economy in general," said John Eichberger, NACS vice president of government relations, in a statement. "Worse, consumers see no end in sight, with 62% saying that they expect prices to be even higher in the coming weeks."
The more dependent we are on other nations, the less secure we are.
This article regarding fuel prices and it's possible effects is reality. How is it that "consumer confidence" is up? Everytime this idiotic statistic comes out we seem to be in the middle of some crisis. Does the State controlled media actually think that if they tell us we are confident that we will be? Just wondering...
Ohhhhhh you gotta love big oil and the politicians. We need to boot the whole lot of them and start fresh
This is a ploy by the mainstream media constantly stating the price of gas. Mainstream media is in the pocket of the White House and Democrates. The lawmakers all have gas cards and we the tax payer, pay for their gas just as we pay for all the traveling flights of the first family. This is all a scam.
I wish we had a President who would govern instead of campaigning constantly against the GOP. He is obsessed with this since he was voted in again.
Theoil companies are boasting a 2 billion plus profit per quarter. My suggestion is hit em where it hurts! Everyone needs to take a week vacation and sit at home. If nothing is moving they aren't going to raise the prices! They'll be cutting them by half!!
Got vacation time? Take it and park the car for a week.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
More Market News
|There’s a problem getting this information right now. Please try again later.|
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'