Opinion: Californians still affected by unstable gas and food prices

By Clark Milan
Contributing Writer

Hearing the sound of gas flow into the tank of my car has been sweet music to my ears rather than just a smelly liquid, especially now since the prices have dropped.

Back in late July, it cost $40.27 to fill the empty tank of my 2002 Honda Civic. Last week it only cost $20.62.

According to KTVU News, based on the AAA Fuel Gauge report, as of December 23, 2008,  the price of a gallon of regular, unleaded gas in California was an average of $1.81, compared to June when the highest recorded average price was $4.61 per gallon.

The plummet in gas prices has had a positive effect on my personal finances,  allowing the extra money to be put towards bills and expenses that are far more important.

One of the few reasons why gas prices have been tremendously reduced is cheaper oil. Last December, KTVU News also reported the cost of crude oil fell below $40 dollars a barrel. Many people are now switching to hybrid vehicles, which means less trips to gas pumps.

Although gas prices are still relatively low, the instability guarantees an increase. Just a few days before Christmas, a local Daly City Arco station charged $1.63 a gallon for regular, unleaded gas. The current price is $1.75. On Jan. 6, The New York Times reported drivers have been paying a few more cents per gallon for six days in a row.

Despite feeling joy and happiness about cheaper gas, the cost of living and food is still a problem.

Many people are affected by the soaring prices for food and grocery stores are forced to raise prices.  Even reasonably priced fast food restaurants are charging more money for their food. While the economy is still in a bad state, food prices appear to remain high and may even continue to rise.

The culprit behind the inflation is corn. In a May 17, 2007 broadcast, Good Morning America said, “It’s used in many grocery store foods and is also fed to dairy cows, hens and cattle. In addition, corn is now used to make billions of gallons of ethanol a year. The growing demand for the corn crop is sending a ripple effect into every aisle of the supermarket.”

These days, money is real low. With the fluctuation prices my biweekly paycheck is spend quickly on the essentials of my life — food and gas.