Let's face it, gasoline not only fuels our cars, it basically drives our economy.
Everything runs on it, and when it goes up, everyone who depends on a gas-powered engine is affected.
When gas prices hit the astronomical high of $4.11 per gallon for regular unleaded on July 17, discretionary spending for the average American slowed down to a crawl. Crude oil had hit its record high a few days earlier at $147.27 a barrel.
Since its record high a few months ago, gas prices have stabilized to 2004 price levels. In 2002, regular unleaded gas sold for about $1.37 a gallon. In 2003, it rose to $1.44 a gallon, rising to $1.65 per gallon in 2004. And that's where we stand as of the close of the year.
The ripple effect of the rising gas prices spared no one. Motor homes were parked or sold. Trips were canceled. Then hotels and motels fell quiet, along with mobile home parks, restaurants and car rentals.
Practically the entire tourism industry slammed on its brakes. The airline industry did a belly flop, as well. Prices of every day consumer items went up, partially due to the record prices.
Ironically, while everyday Americans suffered, oil companies showed record profits.
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