Gas prices may be starting to weigh down U.S. consumers. The gas prices have been hovering at or above $3 for what seems like forever. The problem is gas prices are at $3 now and we are still months away from the peak driving season. CNN reports that consumers are starting to show some real resistance to the high prices but it is unclear whether it is the prices themselves or the weakening economy that is causing the reduced spending.
"With prices over $3 a gallon, there seems to be some real resistance from the consumer," said Michael McNamara, director of research for MasterCard SpendingPulse.
In some weeks demand has fallen by as much as 3 percent.
Although the public has seen $3 gasoline before, 2007 has been different. Where previous price spikes were short-lived, this one seems to be here to stay.
Another reason demand is falling could be due to a slowing economy, or even fears of a recession.
Since topping $3 back in April, gasoline has stayed consistently high, with the nationwide weekly average price never dropping below $2.70 a gallon, according to the Energy Information Administration. For 19 of the last 33 weeks, gasoline has averaged over $3 a gallon.
If gas prices soar as they always do in March, April and May than U.S. consumers could be in for a historically painful experience at the pump. Let's hope somehow the oil prices drop well before that dreaded period begins.
