This browser does not support the Video element.
Price impact being felt from Russian invasion of Ukraine - but more are on the way
More oil production from the Middle East or here in America would help stabilize gas prices - but there’s no telling when that will happen. There are also less obvious ways the invasion impacts us.
FOX 2 - As we witness Russia’s historic invasion of Ukraine, its impact is branching out to our lives in America - most notably - gas prices.
"The biggest effect is really the energy prices and oil prices in terms of shocking customers and, all of a sudden, see that gas prices could be going up. to some degree, this is short-term. I can’t tell you what tomorrow brings," said Patrick Anderson, CEO of Anderson Economic Group.
As of March 1st, the average price of gas in Michigan is $3.57, up a penny from the day before, and a .20 cent jump from last week before Russia’s invasion.
"I'm a sales representative for platinum vape and high time," said Connor Enright. "My job is off the road. It’s definitely expensive to drive around the state of Michigan with gas prices the way they are."
Last year at this time, gas was a dollar cheaper than it is now. Some reports say it could jump another dollar if this invasion continues.
"It’s scary man, especially after the pandemic," said Saqib Akhtar in Romulus. "There a lot of people who don’t have jobs. It will definitely affect a lot of things."
More oil production from the Middle East or here in America would help stabilize gas prices - but there’s no telling when that will happen.
There are also less obvious ways the invasion impacts us.
"Russia and Ukraine combined, account for about 25 percent of wheat production in the world," said Janell Townsend. "That’s a big number."
That could affect the beer industry and other types of booze.
Other dominos include natural gas, which some of us use to heat and/or cook at home. And the metals used to make batteries to power electric cars, which are becoming more popular to drive.
"Until we get some, I think some clarity to what’s happening in Ukraine, we’re going to have a lot of uncertainty continuing in the world," Townsend, marketing and management chair, Oakland University.
More uncertainty means less people willing to spend or invest their money, leading to a larger impact on our economy.