The economy is currently on the rise to recovery, but some say it is possible Michigan gas prices and all others across the country will skyrocket to $5 by the year 2012.The economy may not be able to handle the repercussions.
DETROIT, M.I. – Michigan gas prices may have increased 23 cents from last month which is actually 46 cents higher than it was this time last year, but some say this is nothing compared to what the prices may rise to by 2012. The current average price of gas at $3.13 is the highest price in over two years.
Detroit MI consumers are asking why Michigan gas prices as well as the rest of the country’s prices would rise to such large amounts especially as the economy is starting to improve. Some analysts have said it may be due to the worldwide economic recovery as well as the weak dollar. Also largely populated countries like China and India are increasing their demand for gas, so this may be putting a strain on other countries as well.
If the prices do actually increase, what then will be the repercussions? Will the economy stop its move forward into recovery or return to where it was?
Possibilities include the following:
- Potential car buyers may choose to purchase smaller, more economical cars, which may lower the demand for trucks and large SUVs and could change consumer buying patterns.
- The cost of consumer goods, commuting and vacations could increase as cost gets passed down to customers. Even small business owners may need to pass on expenses to their clients.
- Detroit MI car owners and others may cut back on driving and other expenses as one local in Michigan said when asked what she would spend less on. Lindsay Dymond told The Detroit News, “I would probably spend less money on food.”
Although not all experts or analysts expect Michigan gas prices to actually increase to that extent, but everyone is being mindful of the possibility of what could happen in the future.
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