Gasoline prices nearing record and energy crisis rumors start

The steady increase in gas prices, which are nearing record highs, has started distant rumblings and rumors of looming energy crisis. The price of gasoline has been rising for weeks, causing ripple effects throughout numerous sectors of the economy. There isn’t likely to be a slowdown in the price hikes, either. Post resource – Energy crisis jitters hit as gas prices approach record high by MoneyBlogNewz.

20 cent increase in gasoline occurs easily

In the past week gasoline prices have increased by 20 cents. Reuters reports that gasoline was $3.57 on March 18, but $3.76 on April 8. The price of gas has increased by nearly $1 in the past year. In July of 2008, gasoline hit a record high at about $4.11. Currently, large cities in the U.S. are averaging more than that. California, according to CBS, has already reached a statewide average of $4.14 per gallon as of April 8.

Gas prices could clip wings of airlines

CNN has reported that jet fuel is increasing also and air travel is impacted. Jet fuel costs go up with the price of petroleum, which recently climbed to $112 per barrel. The bottom line of airline industries was really hurt in 2008 when barrels of fuel topped out at $150 a barrel. Shares of major airlines have started to fall on stock markets due to the increasing cost of oil. On April 8 stock costs for many airlines had dropped; Jet Blue by five percent, UnitedContinental by seven percent, and Delta by four percent. Costs of oil and gasoline aren’t likely to decrease, as analysts do not believe that unrest in the Middle East is subsiding. Airline tickets will only continue to go up as the cost of gasoline continues to go up in tandem.

Slashing other areas of spending

Customers want to do something about the increase in price. Charge card companies, according to Daily Finance, have noted falling gasoline sales for the past five weeks, and 70 percent of the nation’s gas station chains have noticed the same. More economic cars have aided in this decrease of sales at gasoline stations. There has been a 37 percent increase in hybrid vehicles this year, reported by the USA Today. Lower demand is resulting from the increase in prices, which might just keep costs high.

Citations

Reuters

reuters.com/article/2011/04/11/us-energy-gasoline-retail-idUSTRE73929V20110411

CBS News

cbsnews.com/stories/2011/04/10/eveningnews/main20052599.shtml

CNN

money.cnn.com/2011/04/08/news/economy/American_Airlines_fuel_crisis/index.htm

Daily Finance

dailyfinance.com/story/drivers-hit-the-brakes-as-gas-prices-rise/19908875/

USA Today

usatoday.com/money/autos/2011-04-06-prius-tops-one-million-in-sales.htm