By: Kali Nicole
knicole@klkntv.com
What's scary about the high price of gas is that usually means everything else we pay for goes up as well. Many of us remember that happening just a couple years ago, but one UNL professor says we won't go there.
It's the talk at the local watering hole, or what you may know as, the gas pump. National experts are predicting $5 a gallon for gas by Memorial Day. "I think it's ridiculous. There's no reason I think it should be that high. I can't afford $5 a gallon," said Alexis Axtell of Lincoln.
Another Lincoln resident, Ross Fitch, says it's something inevitable. "There's nothing you can do about it, it's something you've got to have. There's always talks of it spiking or a disaster but you've just got to deal with it," he said.
Here in Lincoln, one economist says that that's all it is, just talk. "Much more likely outcome is gasoline prices will increase in the summer time as they always do but at a much more moderate rate. Maybe around $4 a gallon," said UNL Economist, Dr. Eric Thompson.
Dr. Thompson says the global economy is not strong enough to call for large enough to call for large enough demand to see that high of a spike. As for the fear of Middle East confrontation, Thompson says he doesn't see it getting any worse than it already is.
"There's a big risk premium already built in to the price of oil and that's in place right now so unless things get way worse we won't see an effect of any substantiality," Thompson said. So, for those worried about the drastic spike in fuel and therefore, even food, Dr. Thompson says, while gas prices most likely will go up, the prices we pay for everything else shouldn't get too far out of hand.
Dr. Thompson and other local economists also released a report this week on the predictions on Nebraska's economy this summer. It's supposed to continue growing, one more reason Nebraskans should not be so concerned.
