UD Professor: Gas Prices Are Where They Should Be
Monday, May 19, 2008 – updated: 3:10 pm EDT May 19, 2008
DAYTON, Ohio -- The upcoming Memorial Day weekend kicks off the summer driving season, and some fear that gas prices may go above $4 a gallon.However, should we really be surprised at this?The price of a gallon of gasoline continues to rise and it appears that there is not cut-off in sight.It is a real possibility that gas will hit $4 a gallon going into the Memorial Day weekend, and one of the strongest demand from drivers is an answer to the question, why so high?Marc Poitras is an economic professor at the University of Dayton, and he said gas is more affordable now that in the 1950s.He said drivers may actually be getting a good deal because gas was only 30 cents a gallon in the 1950s, but “some people made only $20 a week, so relative to income, it would be like paying $5 or $6 a gallon today.”According to Poirtas, inflation alone would have driven prices up to the $2.50-$2.60 a gallon range now, and add to the fact that gas taxes are much higher now than back.Poitras said worldwide demand for oil is way up, fueled by explosive growth in India and China, plus U.S. policymakers are trying to head off a recession.The frustration of high prices leads many drivers to want to boycott or to actually try to organize a boycott of oil companies or gas stations.However, economist said that has almost zero long-term impact.Poitras said, “A gas boycott vents frustration but it has no more affect on gas prices than pouting or stamping your feet.”According Poitras said reducing your gas consumption may help you spend less, but it probably won’t bring down oil prices worldwide.That is because even with all of the driving that American do in all of their vehicles, it still amounts to only about 7 percent of the world’s demand on oil.
Mike Campbell Reports: Are Gas Prices Where They Should Be?
Previous Stories:
- May 15, 2008: SCLC Joins Rolling Boycott To Protest Gas Prices
- May 15, 2008: Drivers Seek Help To Relieve High Gas Prices
- May 14, 2008: Local Man Boycotts Snack Purchases At Gas Stations
- May 14, 2008: City Of Dayton Feels Effects Of Rising Gas Prices
- May 13, 2008: Gas Prices Inch Closer To $4 A Gallon
- May 9, 2008: Soaring Gas Prices Bring To Question GM Production of SUV’s
- May 9, 2008: Soaring Gas Prices Affect The Way People Work, Travel
- May 8, 2008: Local Florist Feels Effects Of Soaring Gas Prices
- May 7, 2008: Gas Prices Jump To New Record High
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