Economists worry about rising oil prices because it tends to generate higher pump prices for Americans. With more money spent on gasoline, there's (theoretically) less money available to spend on goods and services.
Today, GasBuddy.com says that the average price for a gallon of unleaded gasoline is $2.792, up from $2.344 last year at this time.
Now, as a country, it is estimated that we consume 146,000,000,000 gallons of gasoline annually. That converts to 400 million gallons each day.
Therefore, the 44.8-cent difference between today and last year at this time, costs Americans an additional $179,000,000 in fuel charges daily.
And this doesn't account for premium gasoline or diesel fuel charges.
Consumer spending makes up roughly two-thirds of our economy so when gas prices rise, economists worry -- it means that less money is available to pump back into businesses, and that the economy should slow down.
The good news in this type of story is that people in the market for a new home loan may benefit. A slowing economy tends to lead to lower mortgage rates.
As Hurricane Season rolls on and the post-Fed meeting chatter dies down, expect to hear more from the news on the price of oil and gasoline.
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I paid $2.73 a gallon yesterday....which I feel is outrageous!Especially when companies like Exxon/Mobil consistantly turn a 10 billion profit quarterly.Just crazy!
That's an interesting post and if you think about that in combination with the fed cut of 0.5% you have to think it will only go even higher.
www.paul-dunn.net
No complaining, folks. The moment you enter California the cheapest gas is still just shy of $3
Way to keep your finger on the pulse of the market Ilyce
Wayne - You're absolutely right. It's just sickening. Here in Maryland, some folks have even gone so far as to raise the gas tax for transportation's sake. Yeah right!
Paul - I didn't even think of that. Good point.
Joey - Yet another reason why I can't move to California. LOL
Ilyce - It was $2.59 here as of Tuesday when I filled up. I am sure it will go up though. It is interesting to see what the price is in different places around the country.
Hi Ilyce,
Wow! That pretty scary. We're at $2.79 to $2.89 depending on the location right now. Interesting post, Ilyce.
This is a TERRIBLE THING!! Too bad my SUV is too new to trade in! I love it too...but it's a gas hog! I know I'm getting taken at the pump!
I believe it...I'm putting $20.00 in every other day and I look at the gauge and I'm always on E!!!
Candy -It's been a while since I've seen a number that low.
Cynthia - My car knows nothing but premium, so that's about where I am this week, depending on where I am.
Debbie - I sure do feel for you, hon. Keep your head up!
Susie - One day, the G-dogs will actually release what they know so we can cut down on all this wasted money. Unfortunately, I don't think it will be soon.
WOW.. this is crazy
Mehmet - It sure is, isn't it?