We mentioned last week that the price for a gallon of gas is getting closer to the $3 mark, the most it has been since the summer of 2008. There are those who warn that this could have a huge effect on economic recovery. But many experts believe that drivers will just put up with it and pay the price, what else can the do.
Although $3 for a gallon of gas sounds expensive, it is not as much as $4.11 a gallon some time back – also consider that UK drivers pay over $8 for a gallon of petrol as they call it.
One analyst expects that $3 for a gallon of gas will not be for long; by the summer prices will fall again. Mark Zandi from Moody’s Economy.com explains that drivers will pay the $3 price for now, but if it does not fall by the summer, then there could be a huge problem.
If it goes past that stage, then that is when there will be economic recovery concerns. The more gas that you put in your tank, the more you have to take money from another area in your budget. That is when the problems begin and spending stalls.
For more on this visit CNN Money
Also See: Worst-case scenarios for high gas prices