April 28, 2011 at 1:40 p.m.

Gas prices begin to scare us


By J. Patrick Reilly-preilly@thedodgevillechronicle.com

Someone asked me the other day what this area is known for.
I told them while there are attempts to make this a strong business area, the economy makes this difficult at present. I went on to say that the area leans more toward farming and tourism at the present time.
Those two entities could see trouble if the gas prices keep heading toward $5 and $6 a gallon.
This week gasoline in this area has been edging close to $4 as it sits at, for all practical purposes, $3.90. Haven't seen anyone too happy about that and the comments are heading toward frustration. The pain at the pump is already putting a pinch on businesses and households. Local residents have never paid this much for gas in April.
The question is will we be paying this much or more in May, or June, or July? Conventional wisdom seems to think so, what with summer driving season coming soon.
The CEO of General Motors - a company that follows gas prices with vested interest - this week predicted prices will stay high in the near future.
We can hope that these glum predictions are wrong. That might well be the case. In July 2008 - when an average gallon of regular gas sold for close to $4 - some were predicting gas would hit the $5 mark. Summer was far from over, and many were calling on then-President Bush to open the oil reserves or take other emergency measures.
At that time the prices fell. It took time, but a year ago they were back below the $3 mark. Perhaps what has made this latest gas spike so upsetting - beyond its speed - is that we were accustomed again to paying less.
Will gas prices climb to $5 a gallon? I have no idea, but then again, who does? Gasoline is a commodity, and its price fluctuates from day to day.
All we can do is hope it becomes more affordable. Otherwise, indeed, it could be an unpleasant summer for business, tourism and our farmers.
DODGEVILLE

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