Gas prices spike: Why it happened and how long it's likely to last

NBC Universal, Inc.

Gas prices are on the rise again.

Geopolitics may be to blame for the spike.

"First and foremost, the Russians and the Saudi Arabians just announced another cutback in the oil, so they're not producing or sending as much oil into the global marketplace as they were before," said David Holt, president for the Consumer Energy Alliance.

The increase at the pump is not only hitting Bay Area commuters hard, it's creating problems for the transport of good and services, leading stores and restaurants to start passing on higher costs to consumers.

Gas prices are on the rise again in California. Audrey Asistio reports.

"That means all food costs go up, all lumber and construction costs go up, all clothing, all shoes," Holt said.

Experts don't expect gas prices to come all that far down anytime soon.

"I wouldn't be surprised if this could cause some additional inflation in the coming months as producers adjust their prices in response," said Audrey Guo, an economics professor at Santa Clara University.

Contact Us