The big news this morning is that oil prices spiked above $105. Get ready for higher gas prices. While predicting $4 a gallon gas by spring may be a bit premature, it is on the distant horizon. And before gas prices hit that $4 a gallon mark, they will rise steadily, eating into households budgets. All of this just in time for your…tax rebate!
Indeed, as oil prices rise, there is concern that they could tip the US economy into a recession. And, with more of the household budget going to buying gas, that means that the tax rebate that was recently passed will probably disappear. And not into local economies in a frenzy of buying at the store. No, your tax rebate is most likely to be guzzled up by Big Oil companies as you buy gas.
Start re-doing your budget now. And, if you are getting a tax rebate, don’t plan on it being used for anything other than household transportation costs. After all, not even the shiny new tax rebate will be able to buy a great deal of gas.