Tags: Gasoline | dime | four | dollars

Gasoline Just 8 Cents Shy of $4 a Gallon

Thursday, 29 March 2012 07:23 AM

The nationwide average gasoline price is less than a dime away from hitting $4 a gallon.

The American Automobile Association's Daily Fuel Gauge Report shows a gallon of gasoline costs $3.92 at a national average.

Economists and other experts have pointed out that rising fuel prices are threatening to hamper economic recovery, as consumers forgo spending elsewhere in the economy to fill up their cars.

Editor's Note: Meltdown on Main Street Coming, Prepare Now

"There is a lot of frustration that motorists are feeling in their pocketbooks," Avery Ash, manager of government affairs for AAA in Washington, tells the Christian Science Monitor.

"If the average driver uses 90 gallons of fuel a month, it is now costing an extra $12.60 for gasoline" compared with last month.

Concerns that ongoing tensions with Iran will escalate into military strikes and major supply cuts are sending oil prices climbing, weeks ahead of seasonal prices hikes that come with the U.S. summer driving season and also when refineries switch to more expensive seasonal blends.

High gasoline prices are already hampering economic recovery.

The Conference Board reports that its closely watched consumer confidence index slipped to 70.2 in March from a revised 71.6 in February, mainly on fears that rising gasoline prices will push up overall inflation rates and eat into household budgets.

Experts are worried gasoline will inflict even more damage to consumer confidence going forward.

Consumer spending accounts for over 70 percent of total economic output.

"At this point, it's enough to certainly slow things down for the consumer," says Scott Brown, chief economist at Raymond James in St. Petersburg, Florida, according to Reuters.

"I don't think it's enough to throw us into a recession, but we really haven't seen the full impact yet."

Editor's Note: Meltdown on Main Street Coming, Prepare Now

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Thursday, 29 March 2012 07:23 AM
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