As we all know, the gas price is moving up and down. It is so volatile that no one can ever predict where it would go next. That’s just the reality. Even professionals who are applying on My Texas Jobs will find it impossible to identify the next price movement. Its price was even crazier when the pandemic hits the world. Prices dropped from 4 dollars per gallon to just 1 dollar real quick.
Is it Going Up or Going Down?
Prior pandemic, things like geopolitical tensions, storms, and increased travel were the primary factors that increase gas prices.
Whenever the gas price is high, it means that consumers are paying more at the pump and have less purchasing power for other services and goods. On the other hand, higher gas prices are affecting more than the cost of filling up gas stations. This is because higher gas prices directly impact the country’s economy as a whole.
On the contrary, when it falls, it’s a lot cheaper to fill up the tank both for businesses and households. At the same time, it eases the cost of industries that are focused on logistics and transportation such as trucking businesses and airlines.
Experts on My Texas Jobs Explain Impact of Gas Prices
According to industry professionals, the cost of oil drags the economy either for the good or bad. In the next lines, we are going to concentrate on the direct as well as indirect impact of higher gas prices.
The adverse effect of high gas prices is it hampers consumer spending as they are spending a bigger portion of their budget on gas. Additionally, a higher price means that shoppers will be driving or commuting less.
While customers might not drive, they tend to do online shopping often when gas price increases. There have been several studies showing that online shopping searches drastically increase with the increase of gas prices.
This forces retailers to pass the higher expenses to consumers either with increased shipping fees or higher prices for their products. Anything that needs to be transported or shipped will cost more as the gas price increases.
The higher gas prices could lead to an increase in the cost of public transport. Public and shared transportation might be more appealing if the prices keep rising. It’s for the simple reason that it offers a cost-effective alternative to sitting in traffic and thinking of the costly fuel to fill the tank.