A Simple Rule Of Thumb Regarding Oil And How It Impacts The Economy

[Roland99]

http://www.businessinsider.com/oil-impact-on-the-economy-2011-2

According to our analysis, a $10 increase in oil prices translates into roughly a 25 cent increase in retail gasoline prices. Every one penny increase in gasoline is then worth about $1 billion in household energy consumption. (In decimal terms, it is actually $1.4 billion.) Therefore, a sustained $10 increase in oil prices translates into $25 billion in additional household energy spending. Assuming this price rise crowds out spending elsewhere in the economy, effectively acting as a tax, means that a sustained $10 rise in oil prices reduces annual real GDP growth by 0.2%.

Note that oil is up $25/bbl in the very recent past.


and a bit more...
http://investmentwatchblog.com/every-one-penny-increase-in-gasoline-is-then-worth-about-1-billion-in-household-energy-consumption/

[Roland99]

1. Then there's what happened to this guy!

http://consumerist.com/2011/03/the-2300-tank-of-gas.html

youch.