Gas prices have hit a state average of $4 a gallon for the first time since 2008.
According to AAA, average gas prices in Hawaii hit the dubious milestone for the first time yesterday, sparking fears of a nationwide hike and knock on effects for the wider economy.
The state’s average of $4 per gallon is the highest in the nation, beating California’s average of $3.96 and Alaska which is on $3.90.
Island resident Irma Lai said: ‘Of course I’m not happy about it at all, but no one is.
Filling up her small SUV at a gas station that was charging $4.22 a gallon she added: ‘What the hell can I do? I have to drive. I can’t walk everywhere. I use a cane.’
The national average for regular unleaded was $3.56 a gallon, up a nickel from a week ago and 43 cents higher than a month ago.
And with no signs of abating, the price increases have sparked fears of a wider economic impact.
Experts are warning of the psychological damage of $4 gallon will have on people’s spending habits, causing them to divert funds they may otherwise spend on crucial consumer goods and services.
And some economists have warned that a rise in fuel prices could equate to over 600,000 American job losses.
Oil prices have been surging in recent weeks because of the unrest in Libya that has forced that country to shut down its oil fields, which had been producing about 1.6 million barrels of crude per day.
The squeeze on world supplies and concern that uprisings could spread across the Middle East helped push oil prices about 24 percent higher in the past few weeks.
Gasoline pump prices in the U.S. followed oil sharply higher and are still the most expensive ever for this time of year.
According to AAA, $4 gas prices haven’t been seen since 2008, when oil prices skyrocketed well above $100 a barrel.
Hawaii hit $4 for the first time on May 23, 2008, and stayed above that mark until Oct. 12, 2008. During that summer, the 50th state hit its high of $4.50.
Alaska holds the record for an average high of $4.69 reached July 24, 2008, according to the auto club.
Marie Montgomery, spokeswoman for the Automobile Club of Southern California, said the $4 per gallon mark has a key psychological effect on consumers.
She said: ‘$4 is definitely a psychological mark.’
‘I’m seeing in California, a lot of gas stations are almost like they’re afraid to put that 4 on there,’ she said.
‘Nobody wants to be the first.’
