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Page added on April 19, 2014
Gas Prices Continue To Surge, Reach $4 In Some Cities
Gas prices continue to move sharply higher as the Memorial Day driving seasons approaches. Nationwide, the average price of a gallon of regular unleaded gas has reached $3.667. A month ago, the price was $3.538 according to AAA’s Daily Fuel Gauge Report. The average price of a gallon of premium has crossed $4 nationwide to $4.010. The prices increases are geographically uneven. In some large cities, regular has already risen well above $4. As higher prices spread, so do questions about the damage gas prices could do to the economy.
California is the largest state in the U.S. with about 12% of the population. The price for an average gallon of regular there has topped $4.199. In some California cities, the situation is worse. The price of an average gallon of regular is $4.288 in Los Angeles, and $4.274 in San Francisco.
Many of the other states which have extremely high gas prices are also among the largest by population. The average price is $3.949 in Illinois, $3.829 in New York, and $3.747 in Michigan.
Predicting gas prices is a dicey game. Oil, the primary component of gas prices can shoot up because of trouble in Ukraine, or drop down because of larger than expected supplies. Recently, the pressure has been upward. At $104.30 barrel, crude is at a one-year high. Each time unrest in Ukraine heats up, the prices inches higher. Refinery capacity can affect gas prices, too, However, for now, geopolitical considerations are by far the biggest trigger.
An analysis of the most miserable cities in America
The debate about how much gas prices hurt or help the American economy has gone on for decades. The 1970s Arab Oil Embargo battered the U.S. economy. Oil peaked at $145.29 in July 2008. Many experts believe that price shock deepened the recession.
The people most vulnerable to gas prices increases are almost certainly the lower and middle classes, particularly people who have to drive a great deal. Wages have been stagnant among these groups, a problem that plans to increase the minimum wage might solve. In the meantime, the higher gas prices go, the more likely that U.S. consumer spending will be hampered
Read about whether increases in crude inventories will push gas prices down.
In some places, gas is at an eight-month high.
By Douglas A. McIntyre
13 Comments on "Gas Prices Continue To Surge, Reach $4 In Some Cities"
Plantagenet on Sat, 19th Apr 2014 11:57 pm
Obama clumsiness in dealing with Russia has “reset” US-Russia relations back to cold-war status. Unfortunately, these mis-steps will negative consequences far beyond any short-term jumps in gasoline prices.
Makati1 on Sun, 20th Apr 2014 1:04 am
Plant, you are correct. But, I am not sure that the new/old cold war is the result of clumsiness or planned. Nor do I expect it to remain cold for long. The US is finally up against some heavy weights (Russia, China and Iran), not 3rd world banana republics.
Gasoline has been around $5/gal. for the last 6 years here in the Philippines. Time American’s start paying what it is worth.
Boat on Sun, 20th Apr 2014 2:13 am
(Russia, China and Iran) are pretty much third world banana republics. Any large jump in gasoline prices will push the US to an electric economy all the faster. Elon Musk is betting heavy on this.
Makati1 on Sun, 20th Apr 2014 2:37 am
Boat, all three of those countries have very small debt ratios to their GDPs. The US debt has now passed 105% of it’s GDP and heading on up.
No, higher gas prices will NOT push the US to electric. It will push it into bankruptcy. Do you think or just parrot?
Americans are broke! They are not going to switch to electric anything. They are just going to get poorer.
DC on Sun, 20th Apr 2014 2:58 am
Yes, at this rate amerikans will be paying ~ half the true cost of a gallon of gaz-o-leen in what? 30 or 40 years?
dissident on Sun, 20th Apr 2014 3:55 am
Electric economy. LOL. When the US starts building nuclear power plants by the dozen get back to us with the glorious plans of shysters like Musk.
Davy, Hermann, MO on Sun, 20th Apr 2014 11:53 am
I have a VW Jetta TDI (40/mpg hwy) not so good city but I mainly do hwy) diesel is $3.69 and gas $3.39 here in MO. That is not worth writing about and I do not see a Ukraine effect happening. There are so many issues affecting gas prices as to render this article typical stupid MSM gas talk that goes on endlessly.
Mak, give up your lust for your poster girls. Everyone else who looks at these poster girls sees “Ugly”. They are clearly trid world banana republics with huge insurmountable problems. Your thrusting them to a position of worship and awe just makes you look humorous with critical thinkers here on this site. Nothing wrong with pointing out the comparative advantage any country has but being a fan at a football game is different from critical thinking.
DeeC, true gas prices in relation to reality should be many times higher. Yet, in relation to a modern economy constructed on cheap energy they have to fit in the “goldilocks range” meaning an economic cost not a true mechanical cost in relation say to human labor. The Americans may pay lower gas cost but it is unfair to point to the true costs when we consider how the taxes are worldwide. Europe has the higher taxes but there are allot of benefits the Americans do not have without those taxes. Many places in the tird world have subsidized gas prices which is definitely bad because you get an already poor economy adjusted to cheap prices then have to back off when the financial cost rise leading to riots.
Guys, forget the electric economy “tit tain’t gonna happin” we have an oil economy first with no time to transition to electric, gas, AltE, and or fusion, cold fusion, or any other fantasy sci-fi fuel. We will ride the sinking SS Oil ship down together with few lifeboats.
Cloud9 on Sun, 20th Apr 2014 11:56 am
In the Great Depression families were noted for driving to the poor house. Our reluctance to say good by to the car culture is driven by the myth of the open road and the freedom it provides. The upper middle and upper classes are not deterred by higher gasoline prices. A rich young attorney I know looks forward to the thinning of traffic. He thinks it will shorten his commute. I worry that he will have to make it in an APC and wall his home. He is my son.
Kenz300 on Sun, 20th Apr 2014 11:59 am
Buy an electric or hybrid vehicle and wave as you pass the gas station.
Better yet buy a bicycle or use mass transit.
City planners need to wake up and help cities become more people centered and less auto centered.
More mass transit. More walking and bicycle paths that connect work, homes, schools and businesses are needed.
Kenz300 on Sun, 20th Apr 2014 12:02 pm
The price of oil, coal and nuclear continue to rise and cause environmental damage.
The price of wind and solar continue to fall and get cheaper every year.
The clean energy transition is unstoppable, so why fight it? – SmartPlanet
http://www.smartplanet.com/blog/the-take/clean-energy-transition-unstoppable-so-why-fight-it/?tag=nl.e662&s_cid=e662&ttag=e662&ftag=TRE383a915
shortonoil on Sun, 20th Apr 2014 12:29 pm
Storage capacity at Cushing, and along the Gulf Coast is 99% full. There are ongoing efforts to build more above, and below ground storage capacity. The US is now the King of low grade liquid hydrocarbons that are good for making plastic cups, and pipe. The FED is intent on keeping interest rates suppressed so the shale industry can continue to pour $42 billion per year into keeping a million barrels per day of condensate flowing. Don’t worry about the price of gasoline; the FED has your back. The price of plastic cups will remain low for the foreseeable future!
http://www.thehillsgroup.org
Makati1 on Sun, 20th Apr 2014 2:53 pm
Davy, I feel sorry for you and your narrow, Amerocentric mindset. You are obviously hooked on the the government cool aid to think outside the MSM Ministry of Propaganda picture of America. Your claim to ‘exceptionalism’ is the reason that the rest of the world is turning away from the US and is slowly destroying it economically. A whole world exists outside the 50 that is in many ways multiple times better than the US. But then, you are not going to change you mind so ….
Davey on Sun, 20th Apr 2014 4:39 pm
Mak, the feeling is mutual. You must lay in bed contemplating your next anti American idea and feelings. I am sorry you have to suffer so much neurosis.