Pump Patrol: How the increase of gas prices could impact the rest of the economy
When many of us see if gas prices have increased we only look at the price of unleaded gas, but a local investment researcher said we really need to turn our attention to Diesel.
“Diesel is very important, that’s the workhorse of the economy,” Fall Ainina, director of research at James Investment told News Center 7′s James Rider.
Ainina said that those who use Diesel, like truckers are usually the ones who are “making the economy.”
He said we aren’t feeling the trickle-down effect of the increase of diesel prices yet, but we should expect it soon.
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Diesel prices have gone up more than unleaded gasoline, Ainina said this in part because Russia is one of the largest producers for Diesel, especially in Europe.
He said supply was tight before the crisis in Ukraine and now it’s only going to get tighter.
Some states have suggested the idea of lowering the gas taxes, but not everyone thinks that is a good idea.
Ainina said he has seen the trucking industry say they don’t want that, as some of those tax dollars are paid for preparing roads and bridges.
Delivery companies are feeling the squeeze too.
FedEx, UPS and Amazon have announced an increase in prices.
Lyft and Uber have also introduced fuel surcharges.
Ainina said the increase in gas prices could affect everything from delivery services to fertilizer.
You can keep an eye on local gas prices on News Center 7′s Pump Patrol webpage.
