Prices at the pump soar in Ames, across the country

Dustin Mcdonough

ISU students may not have been able to “fill ‘er up” very often lately with rapidly rising gas prices, and some drivers aren’t too pleased about the inflated costs.

Elizabeth Peterson, sophomore in genetics, said she isn’t happy about paying a higher price for gasoline.

“Being a college student and trying to pay for our tuition, I don’t think it’s very good that we have so much for gas,” she said.

Peterson isn’t alone in her sentiment, and some ISU students are choosing to forgo making a trip to the gas station to avoid the higher prices. Beth Brei, sophomore in statistics, said she only fills her gas tank about once a week.

“It gets to be really annoying when you have to pay that much to fill up your car with gas,” she said.

Motorists in Iowa and across the country are having to pay more at the gasoline pumps because of a decrease in the production of crude oil, said David Downing, program planner for the Energy Bureau of the Iowa Department of Natural Resources.

According to a report released by the Iowa Department of Natural Resources on Jan. 15, the average cost of gasoline in Iowa was $1.21 per gallon, a 33 percent increase from last year’s price of 91 cents per gallon.

Downing estimated the average cost of a gallon of gasoline has risen 8 cents since Jan. 15 to $1.29 per gallon.

The cut in crude oil production in recent months was a reaction to large inventories, Downing said.

“In 1998, the inventory of gasoline and crude oil was very high,” he said. “That led to very low gas prices.”

According to the DNR report, the average price of gasoline in December 1998 was 88 cents per gallon in Iowa. The national average at that time was 94.4 cents per gallon.

Because of the high inventory, the Organization of Petroleum-Exporting Countries (OPEC) made the decision to cut back on the production of crude oil last year. With production cut, the price of crude oil has risen.

Downing said last year, the average cost of crude oil was $13 per barrel. This year, the cost has more than doubled to about $28 per barrel.

“When the cost of crude oil increases, gasoline prices always increase,” Downing said.

Students and residents aren’t the only ones worried about the inflation. Some area gas station managers said they also are a little concerned about the higher prices.

Amanda Hilsabeck, sales manager at Kum & Go, 3337 Lincoln Way, said she has heard complaints from customers, though she hasn’t seen any decrease in the gasoline sales.

“I’m hoping the price will go down real soon,” she said. Unleaded gas is currently running $1.33 per gallon at Kum & Go.

Prices are also high at Gateway Expresse, 2400 Elwood Drive, where manager Merlin Bowers said he didn’t understand much about why the gasoline prices were rising, but he noted that this time of year is usually when gas prices are the cheapest.

Unleaded fuel with ethanol costs $1.33 per gallon at Gateway Expresse, with a gallon of premium unleaded going for $1.49.

Downing noted that even though gasoline prices have risen recently, the current prices are not unusually high.

“Back in 1981 and 1982, we were paying $1.29 to $1.34 per gallon,” he said. “When you take inflation into account, today’s price is still a good buy.”

Downing also said the average price of gas in Iowa is usually 1 to 5 cents lower than the national average at any given time.

Some ISU students don’t mind the current cost of gas for exactly those reasons.

Reg Preston, sophomore in mechanical engineering, said the current cost of gas doesn’t bother him. “I’m from western Nebraska, and the last time I was home, gas cost about $1.50 a gallon over there,” he said. “The price here is no big deal to me.”

Downing said OPEC will hold a meeting March 27 to decide what to do about the production of crude oil.

“If OPEC decided to increase production of crude oil, it might eventually lessen the price of gasoline,” he said. “If they continue to hold production, gas prices could rise to $1.50 or more per gallon.”

But regardless of OPEC’s decision, Downing said the price of fuel will likely rise, at least for a while.

“It’s possible for the price of a gallon of gas to rise to $1.40 at least during the first half of the summer-driving season, which begins around spring break,” he said.