People we talked to here in the valley say they're making changes to cope with the rising prices but it's becoming a world-wide problem. Sunday in Japan, that country's energy chief warned the soaring prices could trigger a global recession.
The somber assessment came as he launched a meeting of ministers from the world's top industrialized nations.
Another day- another record for gas prices. AAA says that the national average for a gallon of regular gas hit more than four dollars for the first time. By the end of the week analysts say it could hit $ 4.15.
Mark Zandi, Chief Economist moodys.com, says "There's nothing worse for our economy than surging energy prices at record highs."
In parts of the country, like California, four bucks a gallon is cheap. In southern California, one station owner pushed prices to nearly five-dollars a gallon.
Oil is already approaching 140 dollars a barrel. And on Friday, Morgan Stanley released a report claiming that demand in Asia could push oil to 150-dollars a barrel by July fourth.
The high price of oil doesn't just affect those summer trips to the beach. Higher fuel prices bring higher transportation and food costs, and some companies are cutting jobs because of the increased prices: an economic version of the perfect storm.
"I think this is a serious threat to the U.S. and global economies," says Zandi.
Analysts say that there is little the government can do to bring down the high price of fuel immediately. Many say the key to paying less at the pump this summer is simply driving less.
