Gas prices fluctuate, war not to blame

With the war in Iraq some were expecting a price hike at the pump, but it has not happened

The average price of a gallon of gas on the West Coast is $1.67, in the Midwest it is $1.60 and in the East it is $1.59.

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Those numbers, according to gasprices.com, are monitored daily and change every time a station raises or lowers its prices. The numbers reflect a 22-cent rise since the beginning of the year, which has nothing to do with the war in Iraq.

Unbeknownst to many, the economic crisis in Venezuela has propped up oil prices for several months. Since mid-December, the price of a barrel of crude oil has been above $30.

“Venezuela had a civil disturbance and had to shut down for six weeks, which caused us to receive less oil because that is where oil is shipped from to our refineries in New Mexico,” said Kim Harris, assistant professor in agribusiness economics.

Harris said that because the United States receives most of its oil from Venezuela, the war in Iraq should not have an impact on the price of gas. He said that while Iraq produces about 2 million barrels of crude oil a day, Saudi Arabia has the ability to replace what Iraq does not produce.

Another contributing factor to gas prices is the cold winter this season. There have been tight supplies, but a high demand, which causes the price of crude oil to rise. In the recent months, the price of crude oil has rose about $10 a barrel, causing the price of heating oil and jet and diesel fuel to increase.

Since the war began, the price of crude oil fell $10 and is now at $26 a barrel, but the price at the pump has remained the same.

Harris said this is because gas is purchased at least a month in advance so the price that it was during that time is what it will be for consumers. He said within time, the oil purchased at the lower rate would lower the price at the pump.

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“The gas was refined three to four weeks ago so the price is going to reflect the price of crude made at the refinery during that time,” Harris said.

According to USA Today, there have been several reports analyzing the cost of oil and how it affects the price of gas. Some reflect a rise in gas prices while others show a decline. This is because the population of an area and its demand for gasoline helps shape the market.

Harris said that many people may be worried, but the war in Iraq should not have a tremendous impact on crude oil or gasoline in America.

An official from the corporate office of Clark gas stations who refused to give her name said the price of gas at a particular station is determined by the size of the area and how much business it does. Also, the prices are normally raised at the same time in a particular region, depending whether it is a travel season, a major holiday or is a high-traffic area for tourist.

In Carbondale, the price of gas rises and falls without notice, but has overall been low compared to many areas in the state.

The average gas price in Carbondale is $1.60, which is parallel with the national average.

Julie Kline, a motorist passing through Carbondale, stopped at a local gas station on her way through town because she said gas costs $1.75 near her house, and takes more than $25 to fill her tank.

“I saw the sign for $1.53 and had to stop,” Kline said. “That 22 cents makes a big difference in my pockets.”

Kline said she has not thought about the war and its impact on gas prices because she has not seen a climb in prices like she thought she would. She said she hopes it does not change, but if it does, she will try not to drive as much.

For now the war has not changed much at the pump, but if Venezuela has another crisis the United States will have something to worry about.

“Crude oil supplies have been really tight and we need to keep our eye on Venezuela and the situation it is in with producing oil,” Harris said.

Reporter Samantha Robinson can be reached at [email protected]