Gas Price Pain Spreads

Consumers are cutting back on other expenses

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    NEWSLETTERS

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    A man refuels his car.

    The more you spend to fill your gas tank, the less you have to spend for other things.

    Juan Enriquez says not that long ago it would cost him $30 to fill his tank now it costs nearly $55.

    "Some stuff you like to do but now you can't because you don't have the extra money anymore," said Enriquez.

    Greg Walters watched the price go higher and higher on the gas pump in front of him.

    Gas Price Pain Spreads

    [DGO] Gas Price Pain Spreads
    Consumers are cutting back on other expenses.

    "Every time I fill up it's probably $25 more," said Walters.

    An experience like that hits a consumer's confidence and bank account.

    "A lot of people are struggling right now," said USD economics professor Alan Gin, "and so they are watching their pennies." 

    And a watched penny doesn't always get spent.

    "I'm not going out as much," said May Sanchez, "and I'm not going to my friends as much."

    Greg Walters agrees, "We probably cut down on going out to east during the week."

    Gin says nothing seems to be recession proof these days even clothing stores and Laundromats are feeling the pinch.  But Gin says it goes deeper than that.

    "By my estimates, for every 10 cents that a gallon of gasoline goes up, it takes about $7-million a month out of the local economy," said Gin.

    That will hurt shoppers, retailers and efforts to help a struggling economy.