COMMENTARY | The Associated Press reports that on Feb. 18, the national average for a gallon of gasoline was $3.53, the highest gas prices have been ever for this time of the year. The gas prices have soared by 25 cents within the past six weeks, leaving a strong sign that prices will only skyrocket by summer. Experts have predicted that by April, gas prices could exceed $4.25 per gallon, and as an American on a budget, this is horrible news. Here is how the gas prices will affect my household, and how it might negatively impact the economy within the next few months.
In my household, we have already seen the negative impact of soaring gas prices, which have put a damper on a lot of other household supplies. I have been telling my boyfriend when he finds a good deal on gasoline to put as much in the tank as possible because I know the low prices will not last.
Last week, I found a gas station where gas was only $3.11 per gallon, so I gave my boyfriend my last $20 I had, just so he could put gas in his car. Now that gas prices have soared over 40 cents within a day, I am going to have to cut back on the errands we run, like going to the grocery store and going out to visit family members.
I am also going to have to cut back on the number of groceries I buy within a week, because I am going to need more money for gas. This really hurts my budget because I have income taxes that I have to pay, cats and dogs to take care of, and a family of three to feed. My boyfriend is job hunting, but now he will have to be more careful about how often he goes out to put in applications, because we just do not have the money to put $50 or more in the tank each week.
The economy is really going to suffer because of gas prices, since more people will be spending less on other activities, such as going out to the movies or taking the children to the museum. The economy is not strong enough to handle $4 a gallon gas, and Americans are still struggling to pay their monthly bills on time.
If the gas prices go much higher, I think less people will be out job hunting, since they only have so much money they can spend for gas each week, and that will cause unemployment to increase again. It also will hurt the economy because more people will be spending less at the grocery store, and will have to choose between getting gas to go to work, and paying their bills on time. People are still living paycheck to paycheck, like in my household, and we have to prioritize financially, which is very hard to do when gas is $4 a gallon or more.