Potential rail strike could impact gas prices according to AAA

BIRMINGHAM, Ala. (WBRC) - Railroads and unions have yet to come to an agreement on new contracts and it could impact how much drivers pay at the pump.

Gas prices are slowly but surely decreasing around the country and right here in our home state. Friday’s state average is $3.16, according to AAA. That’s about 10 cents lower than a week ago and 20 cents lower than a month ago.

A potential railroad strike looming in a few weeks could force those prices to trend in the opposite direction.

Clay Ingram with AAA Alabama says gas prices are dependent on many factors but the two main ones are supply and demand. He says if a strike does happen, we could see a noticeable jump in gas prices, mainly because the demand would increase from those who typically rely on passenger railroads.

“The trains, for example, would pretty much stop operating during the strike. So the people that are typically riding these trains would have to find another mode of transportation,” said Ingram. “A lot of them typically end up choosing their own personal vehicle so that causes the demand for gasoline to jump up.”

A strike would impact pretty much all industries because so many rely on railroads for the transportation of food, packages, and even raw materials.

All 12 rail unions must approve their deals to prevent a strike. The deadline is within the first week of December.

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