Local and Logistics Expert Reaction to Rising Gas Prices
CHATTANOOGA (WDEF) – Nationwide gas prices are the highest they’ve been in seven years and up 40% since January, according to AAA.
“It’s ridiculous. It’s out of this world,” says Lara Ariks of Chattanooga. “You’re having to spend less ‘cuz you can’t hardly do nothing because gas prices are so high,” says Joshua Smith of Chattanooga. Prices in Chattanooga are approaching three dollars a gallon and beyond. Some local business owners are really feeling the pinch. They are left with no other choice but to pass those costs on.
“The increase in gas prices ultimately just makes our customers pay more,” says Boyd Hartline who owns Hartline Welding. And customers are taking notice.
“Does it affect my spending? Absolutely. I’d be buying more things in little private businesses if I didn’t have to be spending all my money on gas.”
And while there’s a whole lot of finger pointing going on as to why gas prices are at a seven year high, one logistics expert gives us insight into what this means for our economy. “Usually the cost of moving that product falls on the shipper itself rather then the trucking company. And that of course gets passed down to the consumer. So the consumer ultimately almost always pays,” says John Kingston, Editor-at-Large with Freightwaves.
Natural gas prices have tripled in the last year, a major reason we are seeing these spikes. “Industries are starting to use oil where they might have used natural gas instead,” says Kingston. “And that’s not good for oil consumers because that puts a new surge of demand on oil. It’s not meant for the supply and that’s a very big factor here on why the price of gasoline is rising.”
Kingston says we still aren’t near the oil crisis of the 70’s because cars and energy systems are much more efficient.