Rising gas prices hit drivers nationwide
June 18, 2009
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The current Administration believes that the "Make Work Pay" tax credits that amount to around $10 per week or something like that will help revive the sluggish U.S. economy. Unfortunately, just like the last time we sent out a round of stimulus checks I am afraid that most of this money will be used by consumers to help pay for the rising cost of gasoline.
The price of gas has increased for a whopping 50 consecutive days to a national average of $2.679/gallon. Before this run started the price per gallon averaged $2.05. Let's see how much extra this increase costs consumers every time they fill up their vehicle. I believe that the average light vehicle in the U.S. has a gas tank that holds around 17 gallons of fuel. If you take that 17 gallon capacity and multiply it by the $0.629 increase in the price of gas over thepast 50 days it comes out to...wait for it...$10.693. What a coincidence, nearly the exact same amount as the stimulus if one fills up a vehicle once per week.
This increase in the price of gas, if it sticks, is going to act as a major drag on consumer spending and in turn on the economy going forward.
Rising gas prices hit drivers nationwide
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