The average price of self-serve regular gasoline hit a record high of $3.18, rising more than 11 cents over the past two weeks, according to a nationwide survey released Sunday.
The latest figure topped the record of $3.07 set two weeks ago, which had been the highest price since the average cost of a gallon of gas hit $3.03 on Aug. 11, 2006, according to the Lundberg Survey of 7,000 gas stations across the country.
How long until this starts to impact consumer spending? I don't have a clear answer, but when gas prices hit records in May the picture isn't that good.
As a rough rule, every penny increase in gas prices lowers consumer spending by $1.3 billion.
7 comments:
I live in Pasadena, CA. The price at the gas station nearest my house: $3.69 a gallon.
There's 162 houses preforeclosure in Pasadena right now.
And the economy in LA County is as strong as it's ever been.
Gee, I hope things don't turn bad...
I was in San Diego last weekend and gas was $3.60/gallon. Wow.
TITANIC MAFIA
Gas is $3.59 here, but you can't get any 89. Instead, it's either regular 87, which everyone knows, will destroy performance engines, despite your onboard computer, or else premium 92, which is great for V-8's, if you have $120 in your pocket every Friday PM commute.
So retail stores are emptying out as they're forced to either raise prices or drop quality, and for the first time in US history, Americans are driving less than the year over year before, (although, what's the metric for that stat, other than lower gasoline consumption?)
Sadly, Europe enjoy super-mileage in diesel cars. We drove one from Amsterdam to Paris and back on a single tank, a distance of 1000km.
It was a drop-the-hammer blast.
But European car manufacturers have suffered defeat in the American market. Cheap US gasoline guzzlers even cheaper Korean tin cans, and US "Clean Air" regulations that pan smog-belching tractor-trailers but not diesel cars.
Odd, the European tractor-trailers have clean exhaust devices that scrub out the smog. In the US, it's belch away!! More US duplicity.
Nothing, however, can prepare you for the French Bullet Train. We were at a rest stop, when subsonic vibrations rippled the leaves on the trees, in a growing tingling sense, almost orgasmic, then boom!
This bullet explodes by at 220mph.
American's can't even get a decent 45mph commuter train without having regular derailing wrecks, chemical explosions, and vehicle crossing disasters. America IS a disaster!
SEND HELP! AMERICA SINKING! URGENT!
If you live in California, let your state representative know to keep funding for the bullet train in place.
Also, don't let the LA County MTA raise bus fares.
Of course, public support of public transportation is difficult when the federal government "invests" $500 billion in the sinkhole that is Iraq.
How long until this starts to impact consumer spending? I don't have a clear answer, but when gas prices hit records in May the picture isn't that good.
Ummm... news flash!... high gas prices has impacted consumer spending.
The April consumer spending numbers came out a week or two ago, and it was at its worst level in decades. Most analysts attributed it to high gas prices. Wal Mart and Target stocks plunged the day that news came out.
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