How $ 100 oil would cost you

You should brace yourself for record gas prices before the holidays and higher airfares.

Its recent rise will soon start to bite, at the pump, the airline ticket counter and possibly in your home.

Drivers had gotten off easy, gas prices hadn’t kept up with the increase in oil prices. The main reason: Demand has been fairly tame.

The relative price of gasoline is low, and that’s unsustainable, says Norrish.

Expensive flights

Higher oil prices also mean higher airfare for travelers. Jet fuel has been going up consistently for the last 3 to 4 years to the point where it’s affecting the airlines bottom line. Any cost gets returned to the customer, so they’ve been bumping up ticket prices to make up the difference.

Heating up a bit

There will be higher heating bills for those who use oil with a 22 percent increase in bills from last year.

The bigger picture

Higher gas prices will lift the costs to transport all goods, and manufacturers will respond by raising prices for consumers. But this is just a fear, it isn’t certain yet.

I think it’s normal that prices are rising, but this don’t mean I find it a good thing. They should think about other resources in stead of gas. I don’t think raising the price is the right solution, we should do more research to green business and green methods.

Laura

Source: http://money.cnn.com/2007/11/09/news/economy/oil_pay/index.htm?postversion=2007110916