Gas prices keep Ames residents frustrated
June 21, 2000
As prices at the pump continue to increase, members of the ISU community continue to feel the decrease in their wallets.
In Ames, current prices for a gallon of unleaded gasoline vary between $1.78 and $1.82 and premium unleaded runs as high as $1.97 a gallon.
Benjamin Allen, dean of the College of Business, said the prices are high for a variety of reasons.
“A number of factors, including cartel behavior in the production industry [are causing gas prices to rise],” he said. “Demand for gasoline is high due to normal summer time travel and to the strong economy.
“People are willing and able to pay the high prices. Also, some environmental regulations [are reasons for the high prices],” he said.
Some consumers, though, are not willing to pay the higher prices and are driving off without paying for their gas. Last week, two complaints were filed with the Ames Police Department concerning individuals driving away without paying for gas.
Two Kum and Go locations, 203 Welch Ave. and 4506 Lincoln Way, were victims of gas theft.
Brooke Brewington, manager of the Welch Avenue Kum and Go, said her store reported the incident last week.
“Quite a few stores have problems with it,” she said. “We don’t see quite as many, but the other stores on South Dakota and Duff have had more.”
Neal Gloede, Swift Stop No. 1 cashier at 412 S. Duff Ave., also experienced a drive-off last week.
“It could be due to prices, but a lot of the time, people just forget and run off with it,” he said. “It’s just a regular thing that happens.”
Eric Carter, cashier at Campbell’s Citgo Service Center, 220 Duff Ave., said his store hasn’t experienced any drive-offs, but several people have commented about the increased prices.
“Nobody’s really done anything extreme,” he said. “Every time they come in to buy gas, they just complain.”
Brewington said the gas station employees have no control over the prices.
“The corporate office sets the price,” she added. “It’s what [price] the gas companies sell it to us.”
Brewington estimated that gas has increased about 40 cents in the past month.
Todd Lee, salesman at Benson Motors Inc., 1613 S. Duff Ave., said that while there hasn’t been a big difference in sales, it is still noticeable that gas prices are high.
“Everyone mentions the price of gas when they come here,” Lee said. “They are more conscious when looking at a vehicle, but it’s not stopping them from buying, say, an SUV.”
Allen said he believes there is a chance prices will continue to rise.
“If the people adjust to the price and thus don’t change behavior, the price is likely to [go] higher,” Allen said. “The demand still appears to be price inelastic, which means that the producer will benefit from raising prices, not lowering them.”