Gas prices are breaking record right now for all the wrong reasons, having just set a new all-time high for Labor Day. According to the most recent collection of data, averages gas prices on a gallon of regular across the Bay Area now range between $4.17 and $4.24.
Such is the significance of the spike that dealerships are beginning to report a notable slump in SUV sales directly linked to the rocketing gas prices.
According to industry analysts, sales of SUVs on a national basis are down by almost 70% compared to the same time in 2007. Five years ago, retail figures indicate that 718,606 SUVs had been sold be the beginning of September, while this year the figure is a considerably more sobering 198,930 – a plummet being blamed directly on soaring gas prices.
Market experts state that each time there is a fluctuation in gas prices, the knock-on effect for the auto industry can be potentially huge. In this particular instance however with no end to the increases in gas prices in sight anytime soon, what would normally be a slight hiccup is turning into an ongoing and hugely damaging slump.
Nationwide, the average gas price for a gallon regular is also at a worrying high of $3.80 – a price leaving many with little option other than to consider downsizing their vehicles. Small businesses dependent on cars and light trucks are being hit particularly hard, with some reporting colossal drops in income due to excessive gap prices.
However, some of the country’s more optimistic analysts are advising motorists not to panic, as they expect gas prices to once again begin falling by the end of September – depending of course on a myriad of provisos both at home and in the Gulf.