Rising gas prices to $20 per gallon would severely impact economy, businesses, and consumer spending.

A sudden spike in gas prices would severely impact household budgets, the economy, and beyond. Inflation would rise rapidly, leading to reduced consumer spending. Businesses would struggle, leading to bankruptcies and job losses in travel, retail, and hospitality sectors.

Each penny increase in gas costs US consumers $1 billion annually. A jump to $20 per gallon would add over $5,000 in fuel costs per driver. The economy would need to adapt to high transportation costs, shifting towards urban living, telecommuting, and local production.

The auto industry would undergo a drastic transformation as gas vehicle sales plummet and EV demand surges. Legacy automakers would face financial strain, while supply chains for batteries and minerals would be strained. Freight companies would impose fuel surcharges or cut routes, impacting global supply chains.

High gas prices would have a ripple effect globally, benefiting oil exporters but hurting import-dependent countries. Shipping costs would rise, food insecurity would worsen, and pressure to decarbonize would intensify worldwide. The impact of such high gas prices would be detrimental to the US and global economies, forcing industries to pivot processes and making basic necessities unaffordable to many.

Read more at Yahoo Finance: What If the Cost of Gas Went Up to $20 per Gallon?