Rumors of looming energy crisis have begun as gas costs near record highs. Households and various industries are feeling the effects of the gasoline price hikes, which have been ongoing for weeks. There isn’t really likely to be a slowdown in the price hikes, either. Source of article – Energy crisis jitters hit as gas prices approach record high by MoneyBlogNewz.
Gas costs jump by 20 cents in no time
The nationwide average cost of a gallon of gasoline has risen by almost 20 cents in the past few weeks. Reuters reports that gasoline was $3.57 on March 18, but $3.76 on April 8. The price of gasoline has increased by nearly $1 in the past year. $4.11 was the price you would expect to have paid for gas in July of 2008, a record high. Today, costs are averaging even higher than that. On April 8, California alone reached a statewide high of about $4.14 according to CBS.
The airline industry has been hit hard
Air travel is hurting from the rising cost of fueling a jet according to CNN. The increase in the price of petroleum has brought on jet fuel to rise to about $112 a 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 begun to fall on stock markets due to the increasing cost of oil. Stock costs for UnitedContinental fell by almost 7 percent, Delta by four, and Jet Blue by five on April 8. Experts fear the price of gasoline is not going to drop anytime soon due to unrest in the middle east. Airline tickets will only continue to go up as the cost of gasoline continues to go up in tandem.
Customers are reducing their spending habits
Consumers want to do something about the increase in price. Credit card corporations, according to Daily Finance, have noted falling gas sales for the past five weeks, and 70 percent of the nation’s gasoline station chains have noticed the same. More economic vehicles have aided in this decrease of sales at gasoline stations. There has been a 37 percent increase in hybrid cars this year, reported by the USA Today. Lower demand is resulting from the increase in prices, which might just keep costs high.