Students enjoy low gas prices of early Fall

Although the price of gas is decreasing, it is a natural fluctuation and students should not expect it to stay low.  In fact, students should only expect the prices to rise.
Dr. John Swinton, assistant professor of economics and finance, said there are several reasons why gas prices are low: the first is that gasoline pipelines that were broken in Alaska and caused shortages are now fixed.  This brings more oil to the market, which means more sellers, who in turn expand the supply. 
Also, changes in oil-producing countries like Iran and Iraq directly affect gas prices in the U.S.  Swinton said the gas market works very quickly. 
“Every time there is good news, the prices go down,” Swinton said. In the same way, if there is bad news from the Middle East, gas prices go up. Another reason Swinton gave for low gas prices is normal consumer behavior.“People change too,” Swinton said.  “Across America people are not driving as much because the summer driving season is officially over.  There are a lot fewer people who want gas.”
Swinton said that, although people drive less in winter, the rate increases over the holidays and especially during Spring break.  He said that there is a several-month period all over the country when people take Spring break trips.
Swinton said that it would be foolish for students to look at the current gas prices, assuming they would remain constant, and make plans for a long trip over Spring break.  He said the prices would be back up by then. 
Swinton said that the current low prices will not last, and that there is an upward trend in prices that will only continue in the future.  He said it would be extremely unlikely to ever see $1-per-gallon gas again.
He added that low prices actually hurt consumers more than they help.
“When you try to limit the price [of gas], it disappears,” Swinton said.  Shortages in gas will make the price increase, and Swinton said that, with the coming of winter, especially in places like New England, more gas will be sent there in order to heat homes.  Another way that Swinton said low prices affect consumers negatively is that when a gas station offers low prices, people flock to the stations to fill up, even if they don’t need a full tank.  This could actually prevent those who need it more, like ambulance drivers or firemen, from getting gas.
“You end up hurting consumers more when you keep the price low because you no longer guarantee the people who need it the most get it,” Swinton said.  “It’s a bad way to allocate a scarce resource because you can’t match the people who need it most.” 
Swinton’s word of advice to students is to be flexible with the changing gas prices.
 “The more flexible you are, the more options you give yourself,” Swinton said. “Think, ‘what can I do other than consume gas?’”
Odinaka Ezeokoli, a senior chemistry major, said he rarely goes home to Marietta, and if gas prices continue to increase, he would opt not to drive.
“I got a new bike, so I’m going to bike a lot,” Ezeokoli said.
Katie Miles, a freshman business management major, said she does go home to Augusta on many weekends, but she would look into getting a different car if the prices continue to rise.
“I’d get a car that was more gas-friendly because eventually Daddy’s going to stop paying for gas,” Miles said.
Senior English major Hannah Turner said gas prices have a bigger effect on what else she doesn’t buy instead of how much she drives.   She said that a majority of her driving is to other cities; however, she has chosen not to take certain trips because of gas prices.
Turner said if gas prices got high enough, she would stop driving altogether.
“If I got to a place that I had to allocate that much of my budget, I’d probably just stay in one place,” Turner said.
GCSU alumni Harold Mock said he considers driving “a necessary evil,” and that if gas prices continue to rise, he would try to be as efficient as possible.
“I would make a conscientious effort that, if I was going to drive, I’d run all my errands in one trip,” said Mock.

Posted by Colonnade Archives on Oct 6 2006. Filed under News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry