Bad credit loans are expected to increase as gas prices reach all-time high this month because of a drop in supply. According to reports Sunday, states now move to be one of the most expensive places to buy gas. Among these states would be California, who has seen an all-time high after four years with a four cent per gallon increase.
Leading industry body, AAA, says that last Sunday saw the highest increase in gas prices since 2008 with an average of $4.610 per gallon. The most affected state is Hawaii because of a temporary reduction in supply. Consumers are now considering public transportation just to save on gas until the prices have gone down.
For now, motorists are expected to continue paying more than $5 per gallon. The dramatic increase in prices can be attributed to the power outage in California that has even restricted the supply of gas to an already fragile market. In fact, analysts expect gas prices to climb up for the next few days before declining probably next week.
Meanwhile, the increase of prices and the drop in supply have forced station owners to shut down. This is because when supplies drop, wholesale prices are expected to increase. Hence, distributors and station owners would need to shell out more money just to fill their tanks. Prices would then be raised in order to cover the capital. Other factors for the pricing would be the cost of the succeeding shipments as well as the gas prices offered by their competitors.
AAA adds that the jump in gasoline prices is not only attributed to the lack of supply but also to the newly passed laws in some states that would require a certain blend of gasoline for cleaner emissions. These laws have only complicated the situation since the required gasoline is more expensive than the standard.
But this news is not all bad for the sectors of the economy as lenders are seeing this as an opportunity to get more applications for bad credit loans. Employees would be forced to pay for more gas especially if they come from areas where access to public transportation would be very difficult. Loans would come in handy to fill the big hole in their already set monthly budgets due to the sudden changes in gas prices.
Loan companies are therefore intensifying their campaigns for new signups as the gas prices continue to call for extra cash.