With an economy that’s still struggling to stabilize, the U.S., and other developed countries around the world, monitor the price of oil and all of it’s by-products. Among them is gasoline, which-even with the introduction of hybrid electric cars-is still in high demand around the world. Countries like Saudi Arabia, Russia, The United Arab Emirates, and many others, extract their crude oil from the earth, and then refine it for exportation around the world.
In 2008 gas prices, at least in the U.S., hit an all time high, going well over $4 dollars a gallon in many states. And while they seem to be holding steady at around $3.50/gallon right now; there’s serious speculation that crude oil prices, and thereby gasoline prices, could see a new record that will be close to or above an extreme $5 dollars a gallon, as early as this summer.
Rumors of inflation are running rampant with gas and food prices continuing to stay high, and climb even higher. For instance dairy products, especially milk and cheese, have skyrocketed in recent weeks. Milk which used to run around $3.89 is not up to $4.45 per gallon. And if gasoline prices continue to rise, as some suspect they might; plenty of people are going to be spending their paychecks just to top their gas tanks off.
If you’re thinking that it’s not such a big problem for gas prices to rise, even to such a level, you’d be wrong. Just about everything we use on a daily basis, from groceries, to alcohol, cigarettes, and toiletries, is shipped by some form of transportation that runs on nothing less than a crude oil byproduct. Whether by truck or train which are both run on diesel, the expense to ship these items still spreads across more platforms than just crude oil or gasoline. Consequently, this spike in gasoline prices, even if it’s just for a season, will cause the prices of most goods and services rise as well.
And straining the already exhausted major economies around the world, could lead to drastic fiscal policies that can’t be undone. For instance, the U.S. Congress just pasted a debt ceiling limit increase that held no strings attached to it, for repayment or bonuses for the more conservative fan base. As everyday, average citizens, most people don’t concern themselves with the everyday economics that make up the fiscal policy of their respective governments. However, if you want to know what you can expect from food, beverage, and just about any other consumable prices; pay attention to the gas pump. It doesn’t lie. Check this No BS Top Electronic Cigarette Rankings if you want to know the ranking of your favorite e-cigarette. No lies here!
So the next time you stop to fill up, remember that the price you pay at the pump, might be just the tip of the proverbial iceberg, when it comes to your personal economy. Your paycheck may not go nearly as far, if prices continue to rise as some experts have predicted.