What's Behind Increasing Gas Prices?
Written By: Bob Adelmann | Posted: Friday, March 18th, 2011
With the national average price of gasoline hitting the highest level in history for this time of the year, the impact of that increase reaches far beyond the pocketbook of the average worker driving off to work in the morning. For every 25-cent increase in the price of gas (which has increased almost 70 cents per gallon in the last year, and by nearly 30 cents in just the last month), consumers are forced to spend an extra $3 billion that they weren't expecting.
And it's showing up in changing spending patterns. Jay Ricker owns 53 convenience stores in Indiana which also sell gasoline. He's lucky to break even on the sale of gas as the margins are so tight, but sells gas to generate traffic for the other items his customers want, which is where he makes his money: cappuccinos, candy bars, soda, water, and donuts. Ricker says: "I hate these high prices. People don't want to come in and buy something I make money off."
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