With crude oil prices over $120 per barrel, it is no wonder that gas prices are so high. Oil prices affect not only gasoline, but everything that revolves around gasoline as well. Groceries are more expensive, anything that is delivered by a semi truck is higher, and even something as simple as ordering a pizza is costing a little more these days.
Oil companies are having a hard time keeping up with the rapid growth of India and China. If these trends continue, it is likely that oil prices could reach $200 per gallon or more.
Oil prices are also affecting the rest of the economy. With people spending so much more money on gas and groceries, they are spending much less on other products. As this continues inflations is becoming an ever growing threat.
The government has constructed an economic stimulus packet to help compensate for high gas prices and also to help stimulate the economy. By sending out free money, they are hoping that people will run out and start spending, however, recent polls show that most people will be using the free money to pay bills or to invest.
With prices continually rising and no end in sight, the world may be forced to look for an alternative fuel source to combat recession.
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