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Gas prices skyrocket to over $4, could take food off the table for some

By and FOX 2 Staff
Published  March 7, 2022 5:44pm EST
Economy
FOX 2 Detroit

Gas prices surge, families with food insecurities could face impossible choice

With gas prcies over $4 per gallon, some people who struggle to already make ends meet could be forced to make an impossible choice about fuel or food.

DETROIT (FOX 2) - The war in Ukraine is contributing to a rapid rise in gas prices as Michigan drivers are now paying more than $4 per gallon and it could lead to other major problems down the line and people choose between fuel and food.

Experts don't expect the incredibly high price of gas to fall anytime soon and an economics expert explained that it's a simple issue. The higher the prices, the higher profits.

But that's going to wreak havoc on families trying to make ends meet and could ultimately take food off the table.

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Prices are expected to hit the highest ever later this year as the Russian invasion of Ukraine continues.

But that's not the entire reason for the high price.

Dr. Michael Greiner is an Asst Professor of Management at Oakland University and that's only a contributing factor.

"There are a combination of different reasons. We're all aware about the issue of inflation that had been existing a little bit before hand. Part of the problem is that we had, during the Covid crisis, a big drop in the price of oil," Greiner said.

Now, oil companies are hesitant to drill again as there's really no need. As demand soars, so do profits and, ultimately, what's good for companies is bad for us.

"What we’re seeing is, essentially, the price of oil as it’s moving up is eating and eating more and more of that discretionary income that people have available to use for things, other than the mandatory items like food and fuel," he said.

When people spend more on gas, they may not eat out as much or spend on other luxury items.

But in underserved areas, it could lead to more food insecurity.

The high prices could impact Meals on Wheels programs too. As of Monday, Meals on Wheels in Macomb County is fully operational but that could change as prices surge.

"We rely heavily on volunteers to provide meals for us and it could end up that some volunteers can’t afford to deliver the meals for us, which would negatively impact our process and our budget," division director Sheila Cote.

Hopefully, that's a bridge that won't have to be crossed anytime soon.