Three summers ago, Americans watched in astonishment as gas prices rose to above $4 per gallon across the country. Millions found innovative ways to save money as gas consumed an increasingly large portion of people’s budgets.
Speculation regarding the turmoil in North Africa has resulted in a surge in gas prices once again.
“The revolutions in the Middle East in Tunisia, Egypt and now Libya are partly responsible for the hike in prices we are seeing today,” Steven Fazzari, economist at Washington University in St. Louis said. “And it is not so much that these countries are a major supplier of oil for the United States, but the fear that this instability might spread to oil suppliers such as Saudi Arabia brings higher prices.”
Frank Williams, owner of Green Trails Mobil agreed that tumultuous activity in the Middle East has a large effect on prices.
“We raise the prices because we know there might be a shortage, and we try to always sell the gas for what it costs to replace it,” Williams said.
Williams said prices are determined by looking at the prices of nearby stations and then setting one’s own price around a penny below.
“We actually have a lower profit when gas prices are high or around $4,” Williams said. “For one we sell less, but credit card fees are 3 percent per gallon and eat up a lot of the profit.”
Gas prices in St. Louis are currently set about $3.70 per gallon, but Fazzari does not predict a significant rise in gas prices in the coming months.
“The summer months typically bring a rise of about 20 cents,” Fazzari said, “It is not likely that prices will increase by more than their usual amount unless Middle Eastern gas suppliers witness revolutions of their own. We might see an increase of 25 cents at most.”
Despite a projection of price stagnation, students and staff are adjusting their actions in response to the currently high prices.
“I have my own car and pay for my own gas,” Meredith Nero, senior, said. “Even though I have a job, I still feel the pinch when gas prices rise.”
Nero said she tries to carpool with friends as much as possible.
“I really only drive by myself to work,” Nero said. “I also try and stay close by to my home in Ballwin, which is hard to do because most of my friends live in Chesterfield or close to Marquette.”
Don Coons, counselor, is a member of a carpooling group to save gas money.
“Mr. Smith and I started carpooling with Mr. Keller 12 years ago when we first started as counselors here at Marquette,” Coons said. “It is much more enjoyable riding to and from work for 45 minutes with friends.”
Coons lives in Washington which is more than 30 miles away, and said carpooling helps save a large sum of money.
“It costs me about $35 to fill up my car. Conservatively I save at least one fill up a week. There are 36 weeks in the school year for students. This comes out to $1,260 a year in savings.”