Are Gas Prices Going Up?

Say it ain’t so! The fear of every automobile owner (except for those of you driving those Yarises and Priuses!) could be coming true. Just last year, gasoline prices peaked at around $4.70 a gallon for regular unleaded. Thankfully, they have decreased considerably, and the average is around $2.00 a gallon now. Contrary to what most believe, higher prices on everyday goods do not necessarily mean an increase in gas prices. Take for example, gas is $2.00 a gallon, yet Orowheat bread is still $4.89 a loaf! For this reason, we can assume that the prices of gas do not directly correlate with the state of the economy overall. Actually, one reason lies on the other side of the world. The conflict between Israel and Hamas in Gaza has the potential to disrupt supplies in the Middle East, keeping prices from falling further. So, we can thank this for gas prices beginning to creep back up. Since last year, crude oil prices have plummeted over 70 percent (NY Times). Consumers are not the only ones taking advantage of the low prices either. The Energy Department is planning to buy 12 million barrels to replenish the emergency supply in salt caverns near the Gulf of Mexico, that were depleted after Hurricane Katrina. The radio said today that gas prices are going to rise within the next two weeks, so we can assume that everyone rushed to the gas station right after hearing that and filled up. There is an upside to higher gas prices though: with less people driving, it’s good for the environment. We can’t necessarily disagree with something that is good for the environment, right? That’s right. There are plenty of other things good for the environment that don’t involve us riding down I-5 to work on a bicycle.