CHICAGO -- In the aftermath of Hurricane Katrina, experts in the oil and gas industry predict that gas prices will hit $4 per gallon soon, and consumers in the Southeast and Northeast are expected to be hit the hardest at first, according to an article on www.money.cnn.com.
According to the International Carwash Association (ICA), the increase in the cost of gas has reignited the discussion regarding the relationship between high gas prices and carwashing frequency. Luckily for most carwash operators, previous experience has shown that high gas prices and national emergencies do not affect carwashing habits in the long run, the ICA says.
“During the period of time immediately following a national crisis, such as 9/11 or the invasion of Iraq, overall discretionary spending decreases due to a fear of the unknown,” says ICA Executive Director Mark Thorsby. “However, as the feelings of uncertainty and insecurity wear off, spending behaviors return to normal, including those related to carwashing.”
The article also reports that Hurricane Katrina forced operators to close more than a tenth of the country’s refining capacity and a quarter of its oil production, contributing to the increase in gas prices. Experts say a decrease in prices will be determined by the long-term damage to oil facilities from Hurricane Katrina.
Since this issue is on the minds of operators everywhere, the ICA will be hosting a live chat to discuss how gas prices are affecting the carwash industry and what operators are doing in response. The chat will take place in the next couple of weeks.
The effects of higher gas prices on the industry should be temporary and customers will be back “at the car wash” before long, Thorsby says.
Source: ICA