Consumers feel the pinch at the pump

March 10, 2008 9:11:22 PM PDT
As if you haven't noticed, gas prices continue to go higher, and the pressure at the pump is directly tied to the price of oil. There's no mystery there. The cost of crude hit a record $108.21 Monday before closing at $107.90. That's up $2.75 a barrel.

Over the course of the last week, gasoline prices across Southeastern Pennsylvania went up 15 cents a gallon, and Monday night, there's more bad news from the Pennsylvania Gasoline Retailers Association.

Ross DiBono of the Pa. Gas Retailers Association says, "We still are looking at probably higher gasoline prices coming for the next 30 days or so."

The continuing rise in gasoline prices is alarming people at virtually every corner.

SEPTA reports its regional rail ridership has increased 16 percent in the midst of escalating gas prices. AMTRAK also reports its ridership up as well, 13 percent in the NE Corridor between Boston and Washington, and 12 percent nationwide since October.

Truckers have also been hit hard with the price of Diesel going up today to $4.03 a gallon according to Triple AAA, a new all time record.

Analysts say investors attracted by the weak dollar are the primary reason the cost of a barrel of oil has risen so far so fast. Against the EURO, the dollar has been steadily losing ground closing today at a $1.53 per Euro. Inevitably the price of gasoline has also driven up costs on almost everything and in particular, the costs of groceries.

The question now, will we reach 4 dollars a gallon of gasoline by summer as some market forecasters are predicting? Some like Ross DiBone of the Gasoline Retailers don't think so, but they believe we could get awfully close.