CHICAGO (CBS) — Gasoline prices continue to spike in Chicago, with one station now selling a gallon of unleaded regular for over $4 a gallon.
The average price of a gallon of gas has increased three cents since Monday to $3.62 a gallon in Chicago, according to chicagogasprices.com.READ MORE: Chicago Weather: Frost Advisory Along And North Of I-88
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Newsradio 780 confirms that the BP station at 755 W. Lawrence Ave., near Lake Shore Drive, is selling gas for $4.09 a gallon. Other stations in Chicago are selling gasoline for as much at $3.95. And as unrest in Libya and the Middle East continues, prices well over $4 across the area appear inevitable, analysts say.
And airlines are also increasing their fares to cover the higher fuel costs, just has travelers prepare for their summer vacations.
“As we continue to get closer to the summer, I do expect to see the everyday airfares creep up, $10, $15 $20 every other week or so until we hit summer,” said Tom Parsons of bestfares.comREAD MORE: Plan For High-Rise Development Has Some Oak Park Residents Fired Up
Marketwatch chief economist Dr. Irwin Kellner says the trickle down effect is beginning, meaning consumers will see an increase in everyday items because it will cost more to transport goods to retail stores.
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“Everybody is indirectly affected by the higher price of gasoline because in the final analysis trucks are used to transport goods to retail stores,” said Kellner.
Experts also worry that the rising prices could reverse the nation’s economic recovery as consumers curtail spending to cover the increased costs. And a reduction in spending could lead to higher unemployment.MORE NEWS: ONLY ON 2: Mother Speaks After 7-Year-Old Griffith, Indiana Boy Was Run Over By Car; He Remains Hospitalized
“The reduction in buying power will cause a slowdown, if not worse, for the economy,” said Kellner. “It’s a lose-lose situation.”