Monday, April 28, 2008
Gasoline Prices Could More Than Double In U.S.
The price of gasoline is already at $4-a-gallon at some New York and California stations (diesel fuel for truckers is even higher). There are those who have been predicting it will reach $5-a-gallon before too long.
But now, two analysts are saying, don't be surprised if the cost of gasoline reaches $7 to $10-a-gallon in the United States.
This is not the kind of news that the economy, which is limping along, needs.
There is a point of no return for drivers. What figure triggers decisions to park cars, or stop spending elsewhere to compensate for high gasoline prices, varies with each person. But if people stop shopping, stop eating out, in short, stop spending, because of the cost of gasoline, the effect on the economy will be devastating.
Meanwhile, oil companies continue to make unbelievable profits.
Photo credit: http://www.flickr.com/photos/newbirth/2437666005/