It’s not just the auto industry that will suffer if the price of oil keeps rising the economy will as well because consumer confidence will be knocked. The US economy is still in a very weak state and it was thought that trouble in Europe would be the biggest threat, but things will soon settle now that a deal has been reached to help bailout Greece.

There could not be a worse time for the price of a gallon of gas to go up because the Auto Shows are now in full swing, and they need consumers to not have to worry if they will be able to afford to run a new vehicle, which could deter them from making a purchase. However, this could work in the favor of the more fuel-efficient vehicles but then again you will have to pay a higher price for these, which could cause an issue.

Barack Obama will not be happy because this latest news will be used against him in the run up to the Presidential Election, some will say this is out of his control while others could suggest it because of his party’s policies that have brought this on in the first place.

We have learned from an article here that the national average in April could increase to around $4 to $4.25 per gallon, this could beat the previous all-time high of $4.11 back in June 2008. If this does happen then consumers will not only be affected but also businesses as well because their gas bills could begin to soar out of control, which is something the Obama administration does not want.

There’s another worst-case scenario because some analysts are predicting prices could increase to $5 per gallon, which if happened would do serious damage to not only the US economy but the rest of the world as well. Having said that there seems to be a consensus that the price of a barrel of oil is about to hit its peak and could begin to fall once again, but don’t expect the price you pay at the pump to fall right away because we are always the last to see a benefit.

As gas prices go up it affects consumer confidence, and also leads to many people into cost cutting measures if less driving isn’t an option. According to an article on WSJ by Kris Maher some small businesses are passing on gasoline surcharges, but some make cuts elsewhere.

Recently the average price of a gallon has fallen back to around $3.67 from almost $4 last month. Even though some say prices may continue to fall back over the summer, they are still $1 higher than last year.

A recent study found that 69% of people asked said they had been affected “quite a bit” or “a great deal”, by the higher gas prices. This compares with 55% affected by the higher food prices, 28% by the increase in job losses, and 22% hit by the increase in home foreclosures.

It is also thought that higher gas prices have a bigger impact on consumer psychology as prices are more apparent. Economist for Purdue University, Wallace Tyner, said “Every gas station has the price posted in big numbers that are a constant reminder of the changes”.

A piano tuner who has to drive around 150 miles per day has had to increase his prices by 8% to help with the higher gas prices. Luckily it hasn’t led to any lost business but he said “It’s just a bad deal for my customers.”

Truck drivers are some of the biggest hit with higher gas prices. Matt Vande Gevel of Rockford, Mich., has worked out he can achieve an extra five miles per gallon from his truck if he plans out his routes carefully. He also sticks to 53 miles an hour and tries to catch green lights on his journey to prevent constant stopping and starting.

The higher prices can even affect people who don’t drive, as a Meals on Wheels program in Canton, Ohio, recently found itself losing volunteers who couldn’t afford the higher gas prices. Some coach companies have seen an increase in passengers though as they turn to alternative transport solutions because of gas prices.

The GasBuddy website has seen a big jump in visitors to its site with people trying to find the places with the cheapest gas. They also have a free application for leading smartphones. Are you driving less since the price of gas has gone up?

In the short term people will be happier to spend a little more in stores, but this is not a long-term solution. We all know that when gas prices are high this affects all manner of things, even down to the food that we eat. The reason for this is that it becomes more expensive to get the food to the store in the first place – so prices have to go up.

Now we know that food prices will not change the moment that the price of this fuel goes down however, if it stays lower for a few weeks then you could see the prices of groceries fall. Travelers will also see a benefit as well, as the price of air fair will also go down if these low gas prices continue. We just hope that GM’s CEO does not get his own way with his gas tax proposal.

So we can see that it is win win for the consumer at the moment, but we should not get too complacent. Like we said above, we have no idea as to how long these prices will remain low and if they will go lower. However, we do know that OPEC needs to come to an agreement about increasing output, if they do not soon then will could see prices increasing yet again.

With this in mind, you’ll be pleased to know that we have come up with a couple of gas prices apps for the iPhone which will help you to save money each month by giving you a breakdown of what you are spending, not to mention being a excellent reference guide if you forget what you have spent on fuel on a particular day.

The first app is called GasPrices, as this handy little app allows you to search for the cheapest gas prices in your area, where ever you happen to be. You can also view cheapest gas prices in list format, or on the included map, which gives you directions on how to find the stations as well. Best of this, this app is a free download from the App store, so go ahead and try it now.

Other free great gas price apps include Gas Genie, Gas Price Predictor and Local Gas Prices, all of which are also free to download from the App Store now. Try them now and let us know your thoughts on them.

Do you use your iPhone to search for the best gas prices? If so, let us know which app you use and how reliable it is.

Some people feel that we need to get going already with Fuel Cell technology, although a wait is expected, with 2015 being named as the year for Fuel Cell vehicles. Do you feel this is too late?

Today we hear from CNN, with a story about the highest gas prices being found in Florida. It’s a known fact that prices are rising nationwide, but one station has earned the title of “highest priced gas retailer in the nation”.

Suncoast Energys priced regular gasoline at $5.69 a gallon this week, and this is compared to Orlando’s, the city they’re based in, average gas price of $3.78 a gallon. The station is not designed for the super rich, although it’s priced that way, but is situated in a place where many tourists go after returning rental cars. This means that the inflated price catches a lot of tourists out, and it’s too late by the time they figure out the prices are ridiculous.

Authorities in Orlando have started to make changes to stop gas stations affecting tourists in this way, which includes signs having to be posted that clearly show the price from the street. May 12 is the date gas stations have to comply with the new rule, you can read more about this on CNN.

When do you think rising gas prices will stop?

Take those drivers in Mississippi, on average they spend 6 percent of their annual income on gas for their vehicles – those in Connecticut and New York only spent 2.5 percent of their annual income of gas in 2009. However, these figures grow substantially when there is a price hike, in 2008 those in Mississippi were spending 11 percent of their annual income compared to the other two states mentioned who only spent 4.3 percent.

The 10 states that pay the most for their gas is: Georgia, Kentucky, Idaho, Louisiana, Montana, Mississippi, Oklahoma Carolina and Texas Maine. Those in Florida, New York and Washington are among those who pay the cheapest price for a gallon of fuel.

We know that it is annoying that those in certain states will have to spend more on gas to keep their vehicles running – but it does not change the fact that we all need to reduce our dependency on gas. For more details on this and the full list of the top ten highest and lowest state gas prices read the article by Jeremy Hsu on Live Science

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