Higher Gas Prices Hurt Economy

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By Bob Hansen/NBC

Story Published: Dec 28, 2010 at 7:54 AM MDT

Story Updated: Dec 28, 2010 at 11:22 AM MDT

U.S. - Gas prices are already at an all-time high for the year, and they could go even higher!

Nearly every car on the road runs on gasoline, and when gas prices go up, we pay the price. "Sometimes we have to decide either to pay the basics or to cut costs." "I think the normal market price would be maximum three dollars but not $3.50 or $3.60 or in LA you can find $3.80 per gallon is way to much."

But prices are climbing across the country, during the month which usually sees some of the lowest prices of the year. Charles Langley of UCAN says, "It's sort of like, as far as movement, there hasn't been much of a pulse. We're been around 3-07 a gallon all year long and suddenly in November we saw incredible movement upward."

Economists say that for every 10 cents that gas prices go up, that's seven million dollars out of our local economy every month. We run on an oil based economy so when oil starts to go above 90 dollars a barrel it has a very long term effect on the U.S. economy, in fact the global economy.

So predictions for 2011 run from $4.00 and $5.00 a gallon. To prices actually falling toward the first of the year. In the mean time, drivers pay the prices at home and at the pump.

According to Triple A in Billings the average price for a gallon of regular gas is $2.93 cents, that's about a penny less than last week,10 cents higher than last month and about 51 cents more than a year ago.

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Balphus said on Saturday, Jan 1 at 10:49 AM

Hey DPS, it's because there is not much a president can do about it. The same thing I said when people were raling against Bush and you american born comments is ignorant by the way

DPS said on Tuesday, Dec 28 at 3:35 PM

A real American born President George Bush got hammered for eight years to do something about gas prices. Why isn't anyone screaming at B.O. to do something?

kma said on Tuesday, Dec 28 at 3:34 PM

neighbeor you are right these greedy oil bandits are at it again and while our worthless president is on a vacation thanks to us tax payers the whole economy is going down hill.The oil tycoons that have only greed in them will always have us on a string.Or even better we will turn into third world countries and ride bicycles instead of driving a vehicle.Or even better maybee king obama can walk to his destinatins instead of a limo ride or a airplane.This is the most dispicable thing that our own government is doing to us we can barely survive as it is.

neighbor said on Tuesday, Dec 28 at 12:28 PM

Price fixing is the way those the control it control the rest of us. It is like a puppet to master relationship. The government should step in and set limits. Like the stock market.

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