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Sky-high prices at the pump have Americans feeling gassed.
Rising gas prices have cratered people's views of the economy, writes BI's Juliana Kaplan and Madison Hoff.
Consumer sentiment this month plunged to a record low, coinciding with gas prices surging 21.2% from February to March, the highest jump on record.
(The national average gas price is now $4.13 a gallon. Check out our interactive map to see how each state stacks up.)
The last time the University of Michigan's Consumer Sentiment Index was this low was in June 2022. Any guesses what was happening then? The Ukraine war sent the US average gas price to nearly $5 a gallon.
That's the power of the pump. The stock market could be near record highs. Companies could be reporting blowout earnings. None of it matters as much if you're paying more to fill up your tank.
A big part of the issue is that gas is largely unavoidable.
You can cut down on your subscriptions. You can limit how much you go out to eat. You can buy generic instead of name brands. What you can't do is stop going anywhere entirely. Gas could be $50 a gallon; I'm still driving my kids to daycare every day.
The bad news? It could get even worse.
Historically, oil and natural gas prices rise during the summer as many refineries shut down for maintenance at the end of the first quarter.
Combine that with the never-ending situation in the Strait of Hormuz, and it's easy to see why some believe gas prices won't slow down. Former commodities trader Stephen Schork recently said gas could hit the dreaded $5 a gallon mark.
And he's not alone. JPMorgan also floated the $5 price tag.
Even if you're swearing off your Honda for a Huffy — or you have the luxury of a walkable city with public transportation — you're still likely to feel pressure from the pump.
Businesses need to contend with rising fuel costs, which show up in supply chains and can trickle down to what you pay for things.
It's a problem for companies big and small, but it's particularly hard on small-business owners. They have a lot less wiggle room.
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