Gas Prices Decrease Yet Costs Remain the Same

By: Amelia Nahmias Email
By: Amelia Nahmias Email

HARRISONBURG,Va. (WHSV) -- Paying less than $3 a gallon for gas may be automotive history as AAA reports gas prices have been more than $3 a gallon for 1,000 consecutive days, the longest streak ever.

When oil prices go up it effects gas prices, increasing the cost of things like plane tickets and food. But once those oil prices go back down these businesses don't have to follow suit right away.

Something Greta Ann Herin, who has a family of five to feed, has taken notice of.

"We really notice the uptick in prices, especially on the things that we use a lot of," said Herin.

Like milk, grains and organic foods, which she said are already more expensive.

The 1,000 consecutive days of gas prices above $3 doesn't surprise finance professor Pamela Drake.

"That shouldn't be a surprise, because of inflation, we just expect it to rise," said Drake.

Drake said food prices depend on factors like weather and fluctuate for different reasons.

This is something Herin has come to accept.

"As resources become shorter, and things get more difficult to get, food prices should reflect that. On the other hand those that are on a tight budget, and we are, need food to be relatively inexpensive," said Herin.

Farm machinery and food shipments are directly effected by gas prices which Drake says because of the recession and sluggish economies across the world.

"There really isn't a demand for gas as there has been in the past, so the trend has not been continuing upward," said Drake. But she said some products get sticky.

"They don't go down in price as fast as they go up in price based on the raw materials. That's true with a lot of products not just food," said Drake.

Herin said she's torn.

"You learn every way that you can save without buying really yucky stuff that you wouldn't want to give to your kids, so it's a balancing act," said Herin.

Drake said although oil prices drop, gas prices don't follow that trend immediately making higher gas prices stick around a little longer.


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