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February 27th, 2008
05:01 PM ET

How would $4/gallon gas affect you?

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(PHOTO CREDIT: GETTY IMAGES)

FROM CNN's Jack Cafferty:

$4 a gallon, and maybe more, is the dire prediction for gasoline prices by this spring.

Gas prices have lagged behind oil prices for months, but it looks like they could soon be catching up. The price of crude oil spiked above $102 a barrel today for the first time ever and diesel prices continue to hit record highs on a daily basis.

One Harvard economist tells the New York Times, "The effect of high oil prices today could be the difference between having a recession and not having a recession." It's clear that higher gas and oil prices are just the latest bad news for our economy which is being buffeted by the housing collapse, the credit crisis, rising inflation and a weakening dollar.

If people are forced to spend more on energy costs, it follows they will have less money to spend on other things. Economists say that in December, Americans were spending more than 6% of their disposable income on energy. That's the highest level since 1985.

Regular unleaded gasoline costs an average of $3.15 a gallon today; that's up from about $2.35 a year ago. It also represents a jump of 20 cents gallon in just the last two weeks. And prices are expected to accelerate from here.

Here’s my question to you: How would gas prices of $4 a gallon or higher affect your life?

Interested to know which ones made it on air?

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Filed under: Rising Gas Prices