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Gas prices seem to be creeping up, penny by penny.One year ago the average cost of a gallon of gas was 2.27. Four months ago the average cost was 3.00. One month ago the average cost was 2.24. One week ago the average cost was 2.19. Now it is up to 2.23,up one cent from yesterday.
What does this mean to the consumer? Is this the pick up for the upcoming holidays, or is it something more menacing?
The last year has shown us that the price of gas is volatile. With OPEC in the news for its cut in production of crude oil, and possibly another one looming on the horizon, are the big gas companies preparing for another possible short supply of gasoline?
In 2005 gasoline prices fell from September to into December. The price then rose until the apex it hit in August of 2006 peaking at 3.00 a gallon. Consumers were struggling all this year with the high prices at the pump until last month when they began to fall and continued to do so until prices were more than .80 less per gallon. Everything seemed to be looking rosy until now. Too bad our reprieve was so short lived.
Right now we cannot assume they will go back down, nor can we assume they will continue to rise. Drivers will just have to watch day by day to see what the future unfolds.
It looked like we might be having a pretty good holiday shopping season last week. People were free from the high prices at the gas pumps, and with the Thanksgiving and December holiday shopping seasons right around the corner it looked like the stores might benefit from the gas price reprieve.
Those retailers must be holding their breath in anticipation of what may lie just around the corner. If gas prices continue to rise the holiday spirit might miss us this year.
It's only a few pennies, but it is also only in a week. Just a few months ago we were all commenting on how gas prices seemed to increase daily, and even though it is a slow start, it is rising a penny a day again. In a month that could be .30 a gallon, and in two months we could be right back to just about 3.00 a gallon if this tiny increase continues.
Many conspiracy theories were running wild before the elections. It seemed too coincidental that just before the November elections gas prices fell to the lowest prices in about a year.
Now, with the elections behind us, even a few pennies will have those who believed in the government playing with the prices will be saying "I told you so"!