If you have filled-up in the last few days, surely you know gas prices are on the rise. What you may not realize is all the other things that are set to rise with energy prices. Newschannel 6 went to the experts to see what it means to you.
John Martinez, Ph.D. is a professor of Economics and Director of the Bureau of Business and Government Research in the Dillard College of Business Administration at Midwestern State University. He says the reasons are quite simple. "The costs of goods are an affect of the cost to produce them… Obviously, the cost of gas is involved in just about everything you do," he said.
Martinez says energy costs have a way of working into most of the things we buy. "The clothes you have on, oil and gas have an impact on them. The energy required to run manufacturing plants is going to cause prices to be embedded into just about everything," he said.
Much of the market volatility can be rooted to the Mideast turmoil. Martinez says he is carefully watching for early signs of unrest in Saudi Arabia. A disruption in the Saudi supply would create a massive spike in demand, pushing prices higher.
Despite the pain at the pump, Martinez thinks the high fuel prices may not be totally bad for the Texoma economy. "It's a mixed blessing; as consumers, we don't like it. It can have negative consequences when we go to buy other things. However, in terms of oil production and gas production, that's a major driving force for the North Texas region," he said.
Many of our facebook friends have spoken-out to us about how the rising prices have affected them. "Living in Electra we would drive to Wichita Falls for groceries because the price was cheaper than at our local store. Now that the price of gas is so high, we buy from our local store rather than spend the money on gas to get to Wichita Falls and back. Our local store gets more business now," said Tracie Horton.
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