According to GasBuddy, the average price of a gallon of regular nationwide is $3.632, with the lowest price per state in South Carolina at $3.349 and the highest price in Hawaii at $4.357.
The price problem in California is most acute in several large cities, particularly the state’s two largest. In Los Angeles, the average price is $4.152 and in San Francisco it is $4.149.
The tipping point at which gas prices begin to really hurt the economy has always been a matter of debate. Particularly in lower- and middle-income households in which drivers are forced to go significant distances because of work, gas has to compete with food, clothing and housing costs. At some level, discretionary spending has to be affected. That in turn presses on gross domestic product, because the U.S. economy relies so heavily on consumer activity.
There may not be much relief for drivers in the near term. Conflicts in the Middle East, sub-Saharan Africa, Ukraine and Russia are volatile enough to make traders wary that supply will remain at current levels. One stabilizing factor is that refineries, particularly in the United States, are running at fairly high capacity in terms of the amount of oil refined for gasoline.
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Over time, Americans have been protected by sharp spikes in gas prices. Fuel economy for new cars is at an all-time high. In May, according to the University of Michigan Transportation Institute, the average new car sold during the month was rated at 25.6 mpg.
Is it any wonder that the top-selling car in California is Toyota Motor Corp.’s (NYSE: TM) Prius, the world’s best-selling hybrid vehicle?
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