Gas prices have soared to a two-year high in the Metro area. A gallon of gas is now closing in on $3 in the Washington area.
Drivers have never had to pay $3 a gallon at Christmastime. But the way things are going, this could be the first year.
Gas prices have climbed 16 cents in the last month to around $2.97. Last year at this time, a gallon cost just $2.64. This doesn’t help the economy, which is trying to pull out of the doldrums. Whenever gas prices rise, consumers tend to spend more on gas and less on other items.
“This could have a chilling effect upon consumer confidence," AAA’s John Townsend said. "Let us not forget, the last time gas prices spiked like this, the recession kicked in.” Ouch! We’ve all had enough of the down economy.
Around the nation, a survey shows that gas is cheapest in Denver. But a couple of cities are already over $3 a gallon.
Not surprisingly the price of crude remains at a two-year high. AAA points out that a $10 increase in a barrel of crude oil translates into a 24-cent increase in a gallon of gas.
Keep your fingers crossed that Santa brings us lower gas prices and a better economy as we sail toward the New Year.