Houston News

 

Spike in Gas Prices Likely with Syria Intervention

Spike in Gas Prices Likely with Syria Intervention

As tensions mount in Syria, so do fears of a price hike at the gas pump in the coming weeks.

Nobody is more concerned than those who move the nation's freight around the country.

“If oil moves up, we have to pass that through to our clients in the form of a fuel surcharge, and nobody wants to pay higher prices right now for anything, especially the the end of the line consumer where it ultimately has to end up,” says Doug Waggoner of Echo Global Logistics.

“Fuel moving from $3.50 a gallon to $4 a gallon raises the fuel surcharge by about 10 cents per mile, so that's a significant increase,” he says.

However, oil analyst Phil Flynn at PFG Best says higher prices ultimately lead to lower demand, so prices should fall soon after.  Domestic production and foreign reserves also help.

“Make no mistake about it, if there's an actual attack on Syria we'll see at least one more spike,” Flynn tells KTRH News.  “But if history is any guide, that will probably be the top of the market and prices will fall down pretty dramatically thereafter.”

Still, a prolonged U.S. intervention in Syria could result in another price hike just in time for the holidays.  Flynn however, remains optimistic.

“My expectations is the impact at the pump is a lot less than it would have been a few years ago.  Maybe not as noticeable as most people would have you think in a situation like this,” he says.

 

More Articles