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High gas Prices: A Heavy Hitter on Commuters Wallets

Published: Wednesday, October 15, 2008

Updated: Friday, January 21, 2011 18:01

Record high gas prices are forcing Americans to limit their driving for the first time in nearly thirty years, causing families and students to tighten their budgets as well as a change in driving routines.

"With the cost of gas rising steadily over the last few months I have noticed a change in my driving pattern," said senior Christopher Carney. "This semester I have tried to group my classes together so that I only have to make one trip to campus from my house about two miles away."

With no other form of transportation to campus, students have made it a main concern to monitor the trips they make to campus each day.

"You may find more people will start to consider public transport, which is very limited in choice, or adopt ride-sharing as a way of helping them reduce costs. But there is no easy answer ahead that will provide a simple solution. Behaviors and lifestyles will simply have to adapt," said Enda McGovern, associate professor of marketing.

Still, commuters and students with off-campus housing are affected on a daily basis.

"It's typically hard to carpool since most of the kids in my classes I know do not live me. Without a car I would not be able to get to class however," said Carney. "We do not live in a city where public transportation is readily available and convenient. Conserving gas has become a top priority for me."

"Gas prices are always in the back of your head so making unnecessary trips places can be frustrating. I can definitely say that if prices weren't so high I would make more day trips back home. The drive is only a little over an hour, but the cost of driving there can add up quickly and simply isn't worth it," said senior Matthew Strich.

As consumers, many believe the issue lies with the gas station owners, but the circumstances are much more complicated than that. In fact, gas stations across the area and the economy are hurting not in spite of historically high gasoline prices, but because of them.

"Over the past year we've had record high crude oil prices," said Khawaja Mamum, assistant professor of business economics. "In July of this past summer crude oil went up about $140."

He explained that today's crude oil accounts for 55 percent of the cost of gas prices. The other 45 percent is divided into taxes, refinering, distribution, and marketing which don't fluctuate as often.

"The good news is crude oil prices are down as of right now because the investors in the future markets are afraid that demand for oil will be down due to the bad economy," said Mamum. "Less people are driving and buying cars which is causing the bad economy."

Mamum predicts that this winter will be a bad one and that we will be seeing yet another increase in prices. This will be a result of the high demand for heating oil during the colder weather.

"Globally we are seeing a trend in the rise of energy pricing including natural gas and oil as Europe is also experiencing tremendous pressure on utility pricing. People are going have to adapt to a higher level of expenditure or spending in this area of their lives," said professor McGovern.

According to McGovern, the auto manufacturers are rushing to develop fuel-efficient or alternative fuel vehicles to satisfy the increasing demand.

"Also the damage from hurricane Ike in Texas is contributing to a spike in the price of fuel due to key refineries closing down and these take time to move back on stream," she said. "Many people hope that when the effect of the hurricane passes pricing will become more stable."

Being able to sustain these high gas prices is a constant concern for many commuters. As a result, an increasing number of people are trying to downscale from larger vehicles. Medium sized and smaller cars are being sought out more so than pick-up trucks and SUVs.

"Driving a vehicle that does 15mpg is much more expensive to maintain than driving one that can give you 35mpg," said McGovern. "However the residual value of these larger vehicles is down making them expensive to swap out."

Although gas powered means of transportation have been the way of life for as long as any undergraduates have been around, some students believe we need to evolve and find a better alternative form of travel.

"Gas prices need to go down because the middle class cannot afford college, income tax, and high interest rates as it is. I believe that we should be looking for other alternative fuels such as electronic or hydro cars," said senior Michael McKeever.

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