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Surging Gas Prices Have Ripple Effect

April 2nd, 2012

Gas prices continue to rise across the U.S., and Georgia is no exception. According to AAA, the average price for a gallon of regular gas in the state has ballooned to three dollars and eighty four cents. Higher prices at the pump have had a ripple effect.

Two gas stations near I-85 in Midtown Atlanta sit across the street from one another. A gallon of regular costs $4.09 at each. Drivers like Ben Smith say prices like that make him less likely to spend money inside on snacks and soda.

“I have more of an awareness of it because it cuts so much into my wallet,” he says.

The same is true for college student Rasha Coicou. Her car takes premium gas and she says it costs her $75 to fill up her tank. Coicou says the higher prices have affected her overall spending habits.

“There are times where it’s like, ‘Ok, do I get something that’s worth eating or do I go to the 99-cent menu?” she says.

With gas prices surging, consumers have less disposable income to spend. And gas stations are feeling it, according to Jim Tudor, president of the Georgia Association of Convenience Stores.

“Inside sales are frankly where the majority of money at a convenience store are made,” Tudor explains, “They’re not made at the gas pump.”

And inside sales go down when gas prices go up. Tudor says convenience store owners don’t like to see gas prices increase any more than consumers do.

For More Information:

Gas prices and other fuel information for cities in Georgia from the Energy Department’s fueleconomy.gov web site