The Rising Impact Of High Oil Prices
Largest Share Of Income Spent On Energy Since 1986
Since the beginning of April, the price of gasoline has risen by 13 cents per gallon, according to AAA, a drivers’ organization in Heathrow, Fla. AAA is predicting gasoline prices on a national basis will hit $3.50 a gallon by Memorial Day. “It’s well within the range of possibilities, but we think $4 a gallon is still premature,” says Geoff Sundstrom, a spokesman.
“We are all worth less and earning less than a year ago,” says economist Mark Zandi of Moody’s Economy.com. “That is why consumers are pulling back, and judging from the confidence numbers they are in a panic mode.”
Many energy analysts believe the bad news is just beginning – the price of gasoline is expected to continue rising through Memorial Day.
