Politics & Government

How High Will Gas Prices Go, What Affect Will That Have on Economy?

Have the rise in gas prices had an affect on the way you get to work or on travel plans? Let us know in our comments' section.

Gas prices are on the rise. 

AAA Chicago’s most recent Fuel Gauge Report estimates that in Illinois, regular unleaded gasoline has increased seven cents during the past month, forecasting an average cost of $3.57 per gallon for the month of February, which is 27 cents higher per gallon than last year.

“February’s gas prices were extremely volatile, with a period of decreasing prices and days when the Chicago region’s averages were lower than the national average, which has never happened before,” said Beth Mosher, director of public affairs for AAA Chicago, in a Thursday press release. “We also saw periods of high day-over-day price jumps at the end of the month, which escalated prices very quickly.”

Find out what's happening in Algonquin-Lake In The Hillswith free, real-time updates from Patch.

Locally, gas prices hovered around the $3.90 mark Thursday. 

The New York Times reported Wednesday it is possible prices could reach $5 per gallon for some parts of the country. The article point to tensions in India and Syria and higher demands for gasoline in other countries as reasons for the rise.

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The article also points out gas prices typically go up 20 cents as summer approaches. In addition, analysts told The New York Times gas prices could rise another 50 cents "if the diplomatic and economic standoff over Iran’s nuclear ambitions escalates into military conflict or there is some other major supply disruption."

It's unclear at this point how the gas prices could affect the economy in coming months.

The Associated Press reports today the economy can handle the increase in gas prices seen so far. But if gas prices tip over a record high of $4.11 per gallon on regular unleaded fuel, things could start to get shaky for the country's economy.

The Associated Press has more information on whether rising gas prices will derail economic recovery

Here is a breakdown from AAA Chicago on average gas prices in area county's:

  • In McHenry County, Ill., self-serve regular unleaded gasoline averages $3.51 per gallon, which is 1 cent higher than last month’s average and $.21 higher than February 2011’s price.
  • In Cook CountyIll., self-serve regular unleaded gasoline averages $3.71, which is up $.02 from last month and $.25 higher than last year’s price-per-gallon.
  • In Kane County, Ill., self-serve regular unleaded gasoline averages $3.55 per gallon, which is up 2 cents compared to last month and $.24 higher than February 2011’s price.
  • In Lake CountyIll., self-serve regular unleaded gasoline averages $3.54 per gallon, which is 3 cents higher than last month and up by $.24 compared to this time last year.

Source: AAA Chicago, The Associated Press, The New York Times


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