Gas prices are expected to jump well over $3 by the weekend, and that's just the start. There's now word that record-high prices are on the way.
WICHITA, Kansas, Nov. 6, 2007 – Gas prices are expected to jump well over $3 by the weekend, and that's just the start. There's now word that record-high prices are on the way.
High crude oil prices could cause another price hike in a day or two, and now some are predicting $4 gas prices by Spring.
Harold Miles should feel lucky. He's filling up at $2.91 a gallon.
"I wish it were a $1.91," said Wichita motorist Harold Miles. "Less than that even."
But Miles knows those days are over and soon we'll all be paying more at the pump.
"Forecasts now are anywhere from $3.75 to $4.00 a gallon by Spring," said WSU Econonomist Janet Harrah.
Harrah tells us for every one dollar increase at the pump; it costs the average driver $1000 in extra fuel costs. That's an average of 83 dollars added to your monthly budget.
But keep in mind, higher fuels costs create a domino affect. Gas prices affect transportation costs, which impact food costs, which could hurt retail sales and so on. Eventually those increases put pressure on the entire economy.
That has some experts on Wall Street talking recession. A lot may depend on the holiday shopping season. But don't panic Wichita; we're usually 12 to 18 months behind the national trend.
"We haven't had the slow down in the housing market," Harrah said. "Aviation is doing quite well so I don't see a recession on the horizon for Wichita anytime soon."
Recession or not, these are tough times for drivers on a fixed income.
Miles will drive away with $58 worth of gas. He knows it could be worse, and probably will be before we know it.