article on price rise think wise
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Volatile gas prices have taken center stage in the media as the national average for a gallon of gasoline has swung from nearly $4 a gallon nationwide, to just under $1 in the wake of the COVID-19 pandemic.
Before the pandemic, geo-political tensions, hurricane seasons, flooding in the Mississippi, and increased travel demand during the summer driving season were forces pushing prices higher. At the individual level, higher gas prices mean that each of us pay more at the pump, leaving less to spend on other goods and services. But higher gas prices affect more than just the cost to fill up at the gas station; higher gas prices have an effect on the broader economy. Meanwhile, when gas prices fall, it is cheaper to fill up the tank for both households and businesses, and really eases costs on transportation-focused industries like airlines and trucking - but it also puts a damper on the domestic oil industry.
In general, higher oil prices are a drag on the economy, and so here we will focus on some the direct and indirect negative effects of high gas prices.