What’s new in the oil industry? The national average gas price is nearly $3.18. As gas prices continue to rise at a steady pace, and salaries remain the same, the problem comes down to less consumption. If people, don’t have the incentive to go out, and spend money, they simply won’t, thus, slowing the economy.

How are gas prices scaring off shoppers?

As gas prices keep going up the roof, people just spend less on other things. People are cutting back behind the wheel, eating more at home, and spending as less as they can. This is really causing the economy to slow down, because we consumers are the ones who decide the fate of the economy. We need people to go out there, and just help boost the economy, but with rising gas prices it is just not possible.

What are the expectations of gas prices, and the economy?

The future expectations of gas prices is just to increase as high as the national average upto $3.45 +. Due to such high gas prices, the economy is suffering a lower consumption, and declining in sales in many sectors of the market, including the service market. Also, the rising gas prices cause the prices of many goods to go up such as juice, milk, since transportation got more expensive.  This happened because U.S gas inventories dropped by 34 million barrels.

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