For many Americans, that’s what it all boils down to, and while it may be a little far-fetched to believe that the recession can turn on a tank of gas, there’s much truth in the simple assessment often muttered at breakfast roundtables, on college campuses and at work water coolers.
This week, with Memorial Day on the horizon, retail gas prices are on the rise again, with prices hitting $2.29 per gallon, on average, in Sampson County Monday.
Within the month, regular unleaded gasoline has jumped about 10 percent.
Ironically, oil hasn’t skyrocketed at the same rate, though they are inching higher. At closing bell today, light, sweet crude for June delivery settled at $59.65 a barrel.
Yes it’s higher than it was at the beginning of the year, but not nearly where oil prices were prior to the November election, when gas prices inched over $4 and oil prices were rising to over $100 a barrel.
We would contend that the $1.50 to $1.75 per gallon prices for fuel certainly made Americans feel a little more comfortable about traveling; now, as the summer months approach, the oil industry is rubbing its greedy hands together, anticipating yet more record-breaking profits.
They might not come.
With the economy far from an upward swing yet, and Americans fearful of spending money to travel too far from home, it’s not likely that $2.39 per gallon gas prices are going to lure them out of their homes and onto the roads the way the government would like.
In fact, it might have the exact opposite impact, rooting Americans right where they are — in their homes, afraid to spend money too frivolously as jobs become more scarce and prices for food and other necessities continuing to climb.
Perhaps it’s time President Obama put his foot down with oil companies the way he has with the auto industry and the financial institutions, insisting that executives who get paid in the billions to run these companies find a way to hold the line on gas prices.
What that would do is help local oil dealers and distributors, who are not to blame for ridiculous rise in gas prices. Local distributors are only charging us what has been passed down to them.
It would also offer Americans better options to travel, allowing them to take those vacations they’ve put on hold, and that, of course, would mean restaurants, motels, gift shops, convenience stores would see increased activity.
All of a sudden, we might just see a turn in the recession, the light, if you will, at the end of a very dark tunnel.
“The economic recovery may come down to miles per gallon as the market is trying to gauge where we are at in this economic recovery, said Phil Flynn of Alaron Trading Corp. in a Monday Associated Press article.
So perhaps it does all boil down to the simple statement so many are making, fix the gas prices and you’ll fix the economy.
It sure couldn’t hurt to try.
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