Based on everything I’ve been reading, it seems we’re destined for at least $4 per gallon gas prices on average at the pump by early summer — and that’s for Georgia, which has lower taxes than many other states.
Average prices in the Savannah area are only at about $3.62 per gallon, but the average price for the state of California is almost $4.19 per gallon as I write this.
This doesn’t just affect individual consumers — it affects all business that relies on gasoline at all.
Now, gas prices are still lower than they were in April of 2011 and lower than their peak in the summer of 2008, as the economy was about to go into free fall. But this spike could hit those levels, and even if it doesn’t get that bad, this spike will certainly impact GDP and could lead to a fresh recession.
On the other hand, I have the sense that consumers have already steeled themselves for higher prices.
I remain generally upbeat about local economic prospects for 2012, but high gas prices would certainly impact other retail sectors, tourism, and shipping.
Here’s the latest from GasBuddy.com.
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| Savannah Historical Gas Price Charts Provided by GasBuddy.com |