Gas Prices To Hit $3.00?

If indeed this is true, and Pickens is considered an expert in these matters, then the economy will take a major tumble in the next few months. $3.00 a gallon is a huge expense and such an increase will cause transportation prices to rapidlly increase, leading to price increases on everything! I ain’t an economist, but this doesn’t bode well.

Most retail chains have developed highly sophisticated alogrythms that allow them to keep inventory low – and as a result, transportation of cargo and inventory is a huge expense for retailers – especially big national chains like Wal-Mart, Target and Best Buy. As the costs of keeping the shelves stocked goes up, so will prices. It won’t just be SUV’s that see a dramatic loss in sales. Consumers will stop buying all the crap they covet on their suburban jaunts to their nearest big box retailer. The already failing airline industry will feel the effect of rising fuel costs as well. The economy’s perilous position is poised above the shitter and gasoline priced at $3.00 a pound could easily be the thing that sends it toppling.

4 Replies to “Gas Prices To Hit $3.00?”

  1. Sweet! We have the best leadership ever. I love our president. There are so many reasons, but for today it would be because he insists on NOT developing alternative fuel technology.

    no sir, the energy bill the president is looking for this summer is about more money for refineries. That is his solution to our foreign oil dependence. Our president is the best ever. I can’t wait until the impeachments begin.

  2. For what it’s worth, “conventional wisdom” has held that $5 per gallon will be the tipping point that radically changed consumer behavior in the US.

    As fashionable as it is to hate the President, his de-stabilization of the mid-East is only one reason for the rapid increase in price. The other? Competition from nearby nations, with huge oil demands. India and China are large, low-maintenance customers to the mid-East, and are driving up the price as they work to expand their economies (which are increasingly intertwined into the US economy).

    Still, with that said, I doubt the global economy will support artificial prices at this level for much longer.

  3. Personally, I think the rapid increase in price of petrol has something to do with Tom Cruise and Katy Holmes. I can’t prove it yet, but give me time.

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