MINNEAPOLIS (WCCO) — A gallon of gas in the Twin Cities is running $3.49 a gallon.
Many stations hiked prices by 20 to 30 cents in just a couple of days.
Experts said you don’t have to look far to find the reason behind the surge. The turmoil rolling across the Middle East is playing a big part.
However, the price at the pump has many people wondering why gas isn’t the only thing going up.
Food prices are on the rise. Airlines have increased fares from $5 to $20 per roundtrip ticket in an effort to offset the cost of higher fuel.
Economist David Vang said there are two reasons why Americans are paying more at the pump, to fly and to eat.
He said the government’s policy for the past couple of years to get us out of recession has been to drastically increase the money supply.
“The United States has increased the printing of dollars and a lot of these major commodities like oil are priced in dollars on the world market, so if the dollar falls because we print it a lot, the price of those commodities go up,” Vang said.
Vang said that the rapid growth of China and India’s economies also plays a part in how much we pay for things.
“China’s economy is still growing and so is India, and so they are buying up lots and lots of commodities for their own construction needs and population needs and so forth, so that further the prices of food items fuel and travel of course requires a lot of fuel,” Vang said.