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Higher Gas Prices Could Indicate A Strong Economy
By: Andy Chow | Statehouse News Bureau
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The average cost for a gallon of self-serve unleaded gas in Ohio now hovers around $3.70, according to GasBuddy.com – and analysts predict that amount will jump up soon.
It’s a common trend around this time of year as many families plan their summer vacation.
Ohio University’s Scott Miller is the director of a consortium encompassing energy, economics and the environment. He said, among several other variables, these prices can be a sign of a stronger economy.
“When the economy is really rockin’ you’re looking at a lot more transportation, a lot more vehicle miles driven, a lot more demand at the pump and therefore greater demand equals greater prices," Miller said.
Of course the political climate in the Middle East also has a hand in gas prices.
Miller added this is a time when producers are trying to meet the sweet spot where supply can equal the demand so prices don’t go too high.