Future of Gas Prices Likely Higher

Crutcher is a frustrated driver, and he's not alone when he says he doesn't understand what is prompting prices at the pump to rise.

Like many motorists Newscenter 11 has talked to over the last few weeks, he says he's very concerned about what is happening.

"I don't get it," said Crutcher. "They're going to bankrupt us all if it continues. Every week it's $30, $40, $50 more out of your paycheck that you have to put in your vehicle to get to work and back. But on the other hand, your employer isn't giving you that other $30 or $40 to make up the difference."

As gas prices continue to rise, a business analyst advises motorists to prepare for the 'new norm'.

Dr. Habib Bazyari, a retired business professor at Mississippi State University, Meridian campus, and former head of the business school at the University of West Alabama, says the first big increase is likely around Memorial Day.

Bazyari says the main reason for the rise in prices is the continued decline in supply for oil, coupled with the ever increasing demand for it.

"In the short run, we're going to have probably another spike in prices reaching $3.00 (a gallon), maybe $3.25 or $3.50 is possible. The new normal is $2.75 to $3.00," Bazyari said.

When prices peaked in the past, there was a big push to try new energy sources. That's when the use of ethanol started gaining momentum. Bazyari projects that will not last.

"Economically, it's not feasible because the energy it uses to produce ethanol is more than ethanol produces as energy," he said. "And if you use more than you produce, you go in the hole rather than helping us."

Crutcher, who spends $250 a day transporting trailers, says he needs help and soon.

'Can you continue to do this?' "No. No, I can't," Crutcher said.

You must be logged in to post comments.

Password (case sensitive):
Remember Me:

Read Comments

Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Mad as Heck on Mar 18, 2010 at 07:02 AM
    Well of course it is going to go up, summer and vacations are coming. Just like all the other summers, it goes up, then slightly comes down, but stays up. I think they are just trying to make this country go under. I mean the economy is still hurting, some still do not have jobs, and now we have to pay even more for something we have to have. Are our employers going to give us more money to help with higher gas prices? NO!!! So, we did ourselves deeper in debt. Does the government care? NO!! Is this going to fix anything?? NO!!! We need some yes answers here. Can the prices go lower?? YES!!! Because lower prices means more will buy it and therefore they truly sell more> Anyway, guess a lot of us will just do without a summer vacation because some dumba-- decides to hike our gas price. HHMMM, wonder what we can do here in Meridian....NOTHING!!!!!
  • by Maurice on Mar 18, 2010 at 05:02 AM
    They say the price reflects supply and demand. With double digit unemployment nationwide, I don't believe these unemployed people are out riding around. With that in mind you would think supply would be lower but, lets look at the government role. The currrent administration in their "job creation" wisdome is pushing road and bridge building. Almost everything involved in the use of building roads, uses petroleum. The heavy equipment alone uses millions of gallons each day they operate, this does not include the support vehicles, asphalt, pole drivers, welders, ect. At a time when the government is strongly pushing conservation on the regular working people, they are responsible for a huge rise in fuel consumtion. The oil companies would be fools not to take advantage of this situation. Thank you Mr. President for taking more money out of my pocket.
  • by james Location: hckory on Mar 18, 2010 at 03:41 AM
    it doesn't matter about the gas. by the time they force us to buy health insurance we won't be able to buy gas anyway. we lose no matter what.
  • by Anonymous on Mar 17, 2010 at 04:37 PM
    Of course the prices will go up......Taking advantage of situations seems to be the idea nowadays.
WTOK-TV 815 23rd Ave Meridian, Ms. 39301 Phone: (601) 693-1441
Copyright © 2002-2016 - Designed by Gray Digital Media - Powered by Clickability 88233287 - wtok.com/a?a=88233287
Gray Television, Inc.