Local gas prices follow national trend

Jay Dorne / Asst. News Editor

With concern that gasoline prices could rise to as high as $3 per gallon in some parts of the country this summer, transportation issues are receiving attention from commuters and transportation officials.

Retail prices of gasoline rose 6.9 percent in the past two weeks, according to the Lundberg Survey, which showed a national average price of $1.75 per gallon.

The average price of gasoline in North Carolina, which is just a few cents lower than the national average, is about $1.60 per gallon, according to statistics complied by AAA. 

Some states have already reached record highs, including California and Nevada.  Both North Carolina and South Carolina are just a few cents short of setting records of their own, according to Tom Crosby, vice president of communications for AAA Carolinas.

High gasoline prices have forced many to examine current transportation statistics and habits. The number of total household vehicles in North Carolina is increasing.  Between 1990 and 2000, the number increased 16.1 percent, according to a report from the Federal Highway Administration. 

“We are in pretty treacherous territory,” Crosby said.  “There are many factors contributing to rising prices, and there is no magic bullet theory to bring them down.”

Crosby cited international issues associated with the Organization of the Petroleum Exporting Countries and increased oil consumption in growing Asian economies as contributing factors to rising prices, which he referred to as a “national marketplace phenomenon.”

Although gasoline prices are rising nationwide, some regions have been hit more severely than others, especially western states. According to a report released by the Energy Information Administration (EIA), California gasoline prices are higher and more variable than other states because the state has relatively fewer supply sources and it operates its own reformulated gasoline programs with more rigid requirements.

James Barbour, associate professor of economics, said that gasoline prices are connected closely to a region’s transportation system.

“It is important to know that gas prices are affected more by the amount of gasoline used per mile of highway, rather than the amount used per person,” Barbour said, explaining that this is why many European nations and western states tend to have higher gas prices.

“Part of the issue in price differential from state to state has to do with the fact that taxes are generally placed on gasoline to pay for highways,” Barbour said, who indicated the most effective method for reducing the amount of gasoline people use would be to raise taxes on it. 

According to the EIA, taxes account for 31 percent of the cost of a gallon of gasoline. Distribution, marketing and the costs of refining comprise the rest.

While the increase in gasoline prices is partly due to the cold weather in regions of the country and the increased trading prices of crude oil, the rising prices have forced many to acknowledge the fact that they can change their transportation habits.

“In order to cut down on gasoline use, all Americans would have to work together and change their transpiration habits in order to make a difference,” Barbour said.