The AAA reported recently that the number of miles driven by Americans increased for the first time in two years. The AAA also keeps daily gas price numbers. The average price for a gallon of gas has gone above $3.50. It is $4.00 in Hawaii and some states on the East and West Coasts.
Economists believe that Middle Class Americans will be forced to cut consumer spending because of high fuel prices. That could cause a sharp slowdown in GDP growth. Gasoline prices were $4.oo when the economy began to slip into recession in mid-2008. But, consumers may have learned something since then. The best way to save money is to stay off the highways when possible.
Commuters pay the high price of gas to get to and from work. People who live in cities with public transportation are fortunate. So are those who can carpool. The future is more grim for anyone else who has to drive a long distance to work.
The most likely way that Americans can cut their gasoline bills is to stay at home this summer. Summer is the period when car travel traditionally rises. That tradition could be broken this year
Some oil traders say that crude prices will go higher even if Americans cut energy use. The trouble in the Middle East is too overwhelming as is the rising demand for oil in the developing world. If so, a driver’s strike will not help bring down gas prices.
Better to not drive than to face another year of fighting lines at gas stations to pay $4 a gallon.
Douglas A. McIntyre
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