Gas prices reduction.....?
Instead of being afraid to go to the gas pump to fill their tank, most people are finally starting to feel a sense of relief as gas prices continue to drop. Only one question remains: will the prices continue to fall, or are we just getting a moment of relief at the pump?
According to recent government statistics, the average price for a gallon of unleaded gas is now down 24 cents, at $2.91 per gallon. This is the first time since February that gas prices have been below $3. The east coast is still on the higher side of the price for a gallon of gas compared to the west coast. However, the east coast is still faring better than California, where the average price is $3.35 per gallon.
“I don’t drive as much when I’m at home because gas is still too expensive, but I’m glad it’s going down, because then I can do more things,” first-year LJ Weiss said.
While the prices at the pump are relatively low, the prices of crude oil are even lower. July 3, the price for a barrel of crude oil was $145.29. In one of the steepest oil declines ever, the price has dropped 56 percent to $64.15 a barrel. The Organization of the Petroleum Exporting Countries (OPEC) said that they would reduce the output of barrels of oil to 1.5 million barrels a day so that the price would rise. However, that plan failed, and the price is still continuing to fall.
“I’m glad the gas prices are dropping,” junior Megan Momenzadeh said. “$2.25 a gallon is better than $3 a gallon, but I still wish that the prices were even lower.”
The decrease in the crude oil price is not only making things better for us, it is also making things less expensive for the campus. Elizabethtown College has a thousand-gallon gas pump at the Brown Building. Its gas is used for the rental fleet, maintenance vehicles, lawn mowers, security SUVs, catering trucks and other campus vehicles. The gas is provided by a local company that charges about 35 cents less per gallon than what it would cost to fill a commercial gas tank. With gas prices being so expensive recently, one would think that the use of the pump would decrease. Surprisingly, it has not.
“There has been no real decrease in the use of vehicles,” work station coordinator Joe Yurkovic said. “In order for that to happen, there needs to be a campus-wide effort.”
While there is no real average on how much the tank is used per month, the spring and fall tend to be a bit busier. This is because athletic teams, such as the track team, will rent the vans to go to different events.
The reason that gas prices keep falling is because the global economy has drastically slowed down and, consequently, has depressed the consumption of oil. Part of the reason for the low consumption of oil is the use of smaller and more gas-efficient cars. Many people have traded in their SUVs for smaller versions or have purchased more gas-efficient cars like sedans. The dwindling market for large vehicles has taken a toll on companies like General Motors, who will be closing their oldest factory at the start of the December.
“I’m really happy that gas prices keep falling,” junior Nina Longibardi stated. “I don’t mind driving places as much now, because even though I have a small car and it didn’t cost over $35 to fill my tank, it costs even less now.”
Many members of OPEC foresee prices continuing to drop. The economy is continuing to fall, unleashing a domino effect on the consumption of oil. While prices at the pump will be low, the use of petrol will probably be equally as low.
