Gasoline prices have never been this high in February. Patrick DeHaan with GasBuddy.com says the reasons for the rising
prices are the same old reasons we’ve already heard, especially global politics.
“A lot of that continues to be with the situation with Iran. In fact, the new development here in the last two days, is that Iran is cutting off from Britain and France immediately of oil exports. And that may shake the market up here this week. So the trend definitely remains upward, motorists continue to feel the pain at the pump.”
In fact, higher gas prices could hurt consumer spending and curtail the recent improvement in the U.S. economy. Clark Hodges
is a financial strategist in Texas.
“If you take into consideration when President Obama was elected, the gas price was $1.84, and everybody talks about how the economy hadn’t come back yet. I think it’s done very well, considering the fact that gas prices are where they are.”
But he says if gas prices continue to rise for a long period of time, it will definitely impact the economy.
“I am a big believer in the fact that the economy has more good news than is being reported. Now, if we get into the summer months with this kind of gas price, it’ll definitely start to have an effect on the economy. But I do think it could go on that long, until it has a major effect.”
The national price for a gallon of gasoline is at $3.53 a gallon, up over a quarter since January. Experts say that price could reach a record $4.25 a gallon by the start of the summer.