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You are here: Home / News / Gasoline prices fuel concern: Price per gallon surpasses $2 in all states but New Jersey

Gasoline prices fuel concern: Price per gallon surpasses $2 in all states but New Jersey

March 30, 2005 by Mallory Sherwood Schlabach

By Mallory Sherwood, Features Editor

Theresa Smith stands behind the counter taking money from customers, who mostly only fill their cars halfway, coming through her station.

Smith, the day-time gas attendant at Skinny’s gas station on the corner of Judge Ely Boulevard and North 10th Street, said she hasn’t seen gas go this high before and sympathizes with her customers who come in complaining.

Drivers across America have noticed the increase as prices have hit the $2 mark in every state except New Jersey. Prices are expected to stay at $2, simply because of supply and demand and taxes on gasoline.

Today the price is $2.11.

“There has definitely not been a decline in customers since this gas thing started,” Smith said. “People are just not filling their cars up very much anymore. My average sale is $5 to $10.”

Customers may continue buying gas, Smith said, but they also are complaining.

“Most aren’t vicious about the prices rising; they just ask the questions we all do,” Smith said. “What are we going to do?”

Students say prices are rising because of the war in the Middle East or disagreements with oil companies.

Surprisingly, none of these answers are correct.

“The price of gasoline is a complex combination of global supply and demand, of technological and environmental change, and of shifting consumer wants and needs,” according to the American Petroleum Institute Web site.

The game of supply and demand causes grief in countries like the United States, which imports more than 60 percent of the gasoline consumed.

Gasoline is no longer imported into the United States from the Middle East; instead, the biggest foreign suppliers are Canada and Mexico. Even though they border the United States, gas is still not cheap.

The price has gone up because crude oil, the main component of gasoline, now costs more because its price is determined by the global supply and demand for it, placing the United States in competition with the rest of the world. Gasoline markets are tighter because more consumers are driving than ever before.

Gasoline also is expensive because of taxes.

According to the API Web site, Americans pay for a federal and state tax on gasoline that can add up to 56 cents on every gallon. This causes the fluctuation of prices across the country and even between chain gas stations in the same town when city and county taxes are added.

Abilene remains below the state average with the most common price of gas at $2.10, but other states have much higher prices: $2.38 in California, $2.31 in Nevada and $2.19 in Ohio.

Michael Maxwell, senior business management major from Grapevine, said he is keeping an eye on the pump after prices rocketed past $2.10 at several gas stations in Abilene last week.

“People really can’t do much about it, but they could go to Sam’s,” Maxwell said. “It’s always cheaper there.”

Maxwell said the price of gas will have to hit $2.15 before he’ll consider driving less.

Although students might be able to afford spending less time in their cars, some Abilene residents cannot.

“We probably still have 400 to 500 cars come through here every day,” Smith said. She said close to 70 percent of patrons will purchase gas.

Joel Crane, sophomore computer management major from Atlanta, is not concerned about the rising gas prices.

“I think Americans are finally getting what they deserve,” Crane said. “Americans should just suck it up and stop complaining.

“The rest of the world doesn’t get to drive huge Suburbans and nice cars. It is time we thought environmentally conscious like they do.”

Despite how everyone feels about the gas prices lately, Smith thinks it will go down soon.

“I’m not an expert, but from watching gas prices rise and fall with the holidays and warm weather,” Smith said, “I wouldn’t be surprised if gas prices started to fall a little bit.”

Filed Under: News

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About Mallory Sherwood Schlabach

You are here: Home / News / Gasoline prices fuel concern: Price per gallon surpasses $2 in all states but New Jersey

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  • ACU Debate team finds strength in rebuilding year

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