Preventing High Oil Prices From Blowing Your Budget

Over the weekend, the national average for regular unleaded gasoline hit a milestone of $4 a gallon, according to AAA. Prices are only expected to go higher from there: a run-up in oil prices typically takes several weeks before it fully impacts prices at the pump. Last week's $11-a-barrel gain could translate into an extra 10 cents per gallon by mid-June, says Tancred Lidderdale, a senior economist with the Energy Information Administration.

The problems won't end at the pump, however. "Higher oil prices are the burden that keeps on hitting," says Jim Kliesch, senior engineer for the Union of Concerned Scientists, a non-profit that conducts research on environmental issues. Any type of consumer good or service that is made with petroleum, or is machine-processed or is shipped from one place to another — that is to say, practically everything — will cost more as oil prices climb. How fast and how far those prices will jump varies by item, he says. Prices for fresh farmers' market tomatoes could rise as soon as gas prices do, while it might take longer for increased manufacturing and transportation costs to hit say, flat-screen TVs.

"Our expectation is that the market forces that have been driving oil prices up will continue throughout the rest of the year," says Lidderdale. There's a glimmer of hope that some relief will come in 2009 as countries like Brazil, Azerbaijan, and Sudan begin ramping up oil production. But, for the most part, consumers shouldn't get too excited: today's higher prices are most likely here to stay, says Lidderdale.

From groceries to electric bills, here are some ways to keep skyrocketing oil prices from putting you in the poorhouse:

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