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Economy

Higher gas prices could indicate stronger economy

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Sarah Ramsey
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Drivers can expect to see rising gas prices at the pump with a holiday weekend right around the corner. There are several reasons why – and perhaps even a silver lining.

The average cost for a gallon of self-serve unleaded gas in Ohio now hovers around $3.70, according to GasBuddy.com—and analysts predict that amount will jump up soon.

It’s a common trend around this time of year as many families plan their summer vacation.

Ohio University’s Scott Miller is the director of a consortium encompassing energy, economics and the environment. He says, among several other variables, these prices can be a sign of a stronger economy:

“When the economy is really rockin’ you’re looking at a lot more transportation, a lot more vehicle miles driven, a lot more demand at the pump and therefore greater demand equals greater prices.”

Of course the political climate in the Middle East also has a hand in gas prices.

Miller adds this is a time when producers are trying to meet the sweet spot where supply can equal the demand so prices don’t go too high.