If you’ve been filling your tank lately, you’re well aware that gas prices are at an all time high and are projected to go even higher this summer. An article in Marketwatch yesterday says that average retail gas prices jumped by 12 cents to a record $3.26 a gallon last week alone according to the Energy Department. Gas prices are up nearly 50% since late January, one of the largest sustained increases ever recorded by the government.
Over the past two decades, gasoline price spikes have proved to be relatively temporary, so consumers didn’t really change their behavior by cutting back their discretionary spending in other areas. By the time consumers got around to changing their behavior, prices had fallen back.
This time, it could be different.
Gas prices typically peak in the late summer months with demand fueled by vacation drivers; if that pattern holds this year, prices could be heading much higher in the near term…