Egypt’s Power Shift May Strike Close to Home

Two days after sweeping political reform in Egypt, White House Press Secretary Robert Gibbs has acknowledged that, “inherent in the pricing of oil is some volatility.  We continue to monitor that” — and Berlin residents could be affected.  More than eighty percent of Berlin’s work force commutes an estimated 32 miles per day, according to 2008 and 2009 demographic information.  A rise in gas prices could leave Berlin commuters with an uncomfortable increase at the pump.

In a press briefing on Monday, Gibbs remarked, “Egypt is not an oil exporter. But whenever you have a crisis in a country with the magnitude of this, its impact on the global economy is watched quite closely here.”   

Berlin Mayor Adam Salina also commented on the situation, stating “I think everyone’s keeping a close eye to see what’s going to happen in the region. It could be a domino effect.”  

The last period of instability in the Middle East began with the 2003 Iraq Invasion, and culminated in an all-time high gas price of $4.11 per gallon over a five year period. Should gas prices reach those heights this time around, a single Berlin commuter could face a $400 increase in yearly gas spending on work commute alone. Assuming prices hold steady above $4 per gallon, that amounts to $12,000 a year for all Berlin commuters.

Berlin residents may have to trade higher prices at the pump for more local pursuits. When asked how these changes could affect Berlin, Mayor Salina continued, “Instead of heading out of town to shop, I think people will be sticking a little closer to home.” An adjustment of habits for some, but also a welcome boost for Berlin’s economy.