Guide Note

On June 30, 2008, U.S. gas prices reached another record high. According to an AAA survey, the nationwide average for gas was $4.086 per gallon.¹ The increase in gas prices has cause increases in shipping costs, and has therefore led many businesses to increase the cost of other goods, including food.²

Fast Facts

1. Gas prices rose 2.9% during the month of June in 2008¹
2. Gas prices rose nearly 38% from June 2007 to June 2008¹
3. Crude oil prices increased 40% during the first five months of 2008³
4. U.S. gas consumption dropped by 2% from 2007 to 2008 for the first time in decades⁴
5. When asked about the prospect of $4 gas during a press conference, George W. Bush replied: ""That's interesting. I hadn't heard that." ⁵

1. Increasing international demand for oil
2. Decreasing availability of oil
3. Turmoil in the Middle Eastern region
4. Policies of The Bush Administration
5. OPEC⁶

In May of 2008, CreditCards.com conducted a survey on the driving habits of Americans, who reported the following cutbacks:

1. 66% reported less driving for pleasure
2. 53% reported a decrease in driving to visit friends and family
3. 25% reported they had cut down on driving to work

Of the 54% of those polled who reported less driving for vacation purposes, the greatest decreases were among those earning between $30,000 and $49,000 per year.⁷