Gas Prices Surge Again, Renewing Talk of a Double-Dip Recession

A gallon of regular gas climbed to $3.503 on Sunday -- nearly 38 cents higher than a month ago and up 15 cents in a week, according to AAA, which posts gas prices daily. Oil hit $106 a barrel Monday as escalating violence in Libya seems likely to move the price of crude higher.

It has been said often, though perhaps not enough, that the risk of a double-dip recession stems more from oil prices than anything else.

The cost of gas has now risen to a level that will clearly affect the budgets of both consumers and certain businesses. There doesn't appear to be a single tipping point that triggers a pullback in spending as household transportation needs vary significantly. Obviously, however, more affluent consumers will not be hurt as quickly as middle- and lower-income groups.

Rising gasoline prices clearly pose risks for businesses, as well. The International Air Transport Association recently cut its profit outlook for airlines this year to $8.6 billion, down 46% from last year. Airline companies are no strangers to layoffs.

Other industries that ship goods over long distances will also be victims of high gas prices. As odd as it may seem, even tech companies that have to ship components and finished products will face much higher transportation costs. Fast-food firms like McDonald's (MCD) and Starbucks (SBUX), with margins already under pressure from the rise in agricultural commodities, will have to pay higher prices to get products to their thousands of stores.

The soaring price of gasoline is death by a thousand cuts to the American economy.


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Chantal Ross

the best way to save on fuel cost is to use a good fuel enhancer product, XFT is by far the best, you can purchase it at www.greencanada.goxft.com

October 11 2011 at 10:36 AM Report abuse rate up rate down Reply
gingerlead

Gas pumps are nothing but ONE ARMED BANDITS since the Bush administration. One thing I can say for PRES Clinton is he put a cap on the gas prices at $1.29 per gallon. These other excuses for presidents have done nothing but shake us down for every dime they could take us for.

March 29 2011 at 4:57 PM Report abuse rate up rate down Reply
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March 21 2011 at 2:47 AM Report abuse rate up rate down Reply
justbritty10

wow the kool aid drinkers are out in full force. how exactly has odumba saved this country from diaster? all he has done is spend hardworking taxpayers money and put this country even further in debt. he represents people who don't/can't think for themselves and would rather have the government take care of them and do their thinking for them. without his teleprompter he is a big ZERO.

March 08 2011 at 2:14 PM Report abuse -3 rate up rate down Reply
fpfp040408

The repubs promised when elected they would IMMEDIATELY start to tackle the unemployment crisis, what have they done NOTHING ! liars all.

See full article from DailyFinance: http://srph.it/g87Wok

March 08 2011 at 11:27 AM Report abuse +3 rate up rate down Reply
fpfp040408

Yet , another opportunity for our great President Obama to show his strength courage and brilliance in solving another potential crisis that threatens this great nation. GOD BLESS PRESIDENT OBAMA !

See full article from DailyFinance: http://srph.it/g87Wok

March 08 2011 at 11:23 AM Report abuse +2 rate up rate down Reply
fpfp040408

President Obama thanks to his strength , courage and leadership now has an approval rating of 54% . I have yet to see ONE repub who can challenge him ! Obama 2012 = a landslide victory

See full article from DailyFinance: http://srph.it/g87Wok

March 08 2011 at 11:23 AM Report abuse +2 rate up rate down Reply
fpfp040408

GOD BLESS PRESIDENT OBAMA , the greatest president since FDR. He has saved this nation from total collapse and ended a war . OBAMA 2012, there is not even one potential opponent. It will be the greatest landslide in American history.

See full article from DailyFinance: http://srph.it/g87Wok

March 08 2011 at 11:21 AM Report abuse +2 rate up rate down Reply
fpfp040408

President Obama thanks to his strength , courage and leadership now has an approval rating of 54% . I have yet to see ONE repub who can challenge him ! Obama 2012 = a landslide victory

See full article from DailyFinance: http://www.dailyfinance.com/story/gas-prices-surge-again-and-renew-talk-of-a-double-dip-recession/19870115/?icid=sphere_copyright

March 08 2011 at 11:19 AM Report abuse +1 rate up rate down Reply
flyfishy2k

rep. bachman is acusing reid pelosi of double counting $105 - billion on health care i can not say the presiden,t new of this a nice guy like himself.

March 08 2011 at 10:04 AM Report abuse rate up rate down Reply