New York
With about six weeks to go until the summer driving season begins, the price of a gallon of gasoline is just 18 cents away from the record price of $4.11, which was set in the summer of 2008.
The prices at the pump hit a national average of $3.83 a gallon on Monday, according to AAA. That’s close to the point where consumers say they will have to start cut back to pay their fuel expenses. This could adversely affect restaurants, malls, and entertainment venues that count on people driving to get there. Some analysts say it’s one reason the stock market has been struggling recently, including on Monday, when the Dow Jones Industrial Average fell 140.24 points to close at 12,201.59.
“I am sure the rising cost of energy is bothering the market,” says Fred Dickson, chief investment strategist at D.A. Davidson & Co. in Lake Oswego, Ore. “I do think the uptick in gasoline prices will have an impact on consumer spending in the next few quarters.”
Perhaps, because gas prices have been rising for months, most Americans are not surprised. In a survey last month, the Gallup Organization found the average American expected the price of gasoline to peak this summer at $4.36 a gallon. Some 20 percent of respondents thought the price could go as high as $5 a gallon.
Nearly every spring, the price starts to climb as refiners shift over to their summer blends, which are more expensive to produce. On top of that, this spring has seen disruptions in the oil market because of the turmoil in Libya.
With about six weeks to go until the summer driving season begins, the price of a gallon of gasoline is just 18 cents away from the record price of $4.11, which was set in the summer of 2008.
The prices at the pump hit a national average of $3.83 a gallon on Monday, according to AAA. That’s close to the point where consumers say they will have to start cut back to pay their fuel expenses. This could adversely affect restaurants, malls, and entertainment venues that count on people driving to get there. Some analysts say it’s one reason the stock market has been struggling recently, including on Monday, when the Dow Jones Industrial Average fell 140.24 points to close at 12,201.59.
“I am sure the rising cost of energy is bothering the market,” says Fred Dickson, chief investment strategist at D.A. Davidson & Co. in Lake Oswego, Ore. “I do think the uptick in gasoline prices will have an impact on consumer spending in the next few quarters.”
Perhaps, because gas prices have been rising for months, most Americans are not surprised. In a survey last month, the Gallup Organization found the average American expected the price of gasoline to peak this summer at $4.36 a gallon. Some 20 percent of respondents thought the price could go as high as $5 a gallon.
Nearly every spring, the price starts to climb as refiners shift over to their summer blends, which are more expensive to produce. On top of that, this spring has seen disruptions in the oil market because of the turmoil in Libya.
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