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Energy

Gas Prices Soar 20% In A Year

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
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The cost for regular gasoline has rose over $3.17 on average last week according to AAA. That is 20% above the same time a year ago.  The price is much higher in densely populated areas like New York State, Illinois, and California which together have 25% of the population in the US.

The price of premium is currently $3.44, although presumably people who drive cars that need it are from higher income brackets.

No one knows what the tipping point is when gas prices will double over consumer spending and business activity. It is, of course, a progressive trend, but at some point it will become very visible in the economy. People will reduce spending beyond the necessities of everyday life because gas and heating oil prices have become too much a part of their household budgets. At some point, economists will point to gas more frequently as a reason for a slowdown in GDP.

Gas was $4 in June 2008. The third anniversary of that time is coming up. There are a great many reasons to think gas will be back atop $4 this June. The Middle East may be the reason. A drop in refinery activity may be as well. But, there are too many forces pressuring the price higher.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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