Rising gas prices fuel concerns

By Brian Schroeder, Staff Writer

As Americans decide what to sacrifice in their budgets so they can afford to put fuel in their cars, the U.S. government continues to shift its feet on what to do about the gas prices that are averaging $3.60 per gallon across the country.

In a press conference April 29, President George W. Bush said Congress should open up the Alaskan wildlife refuges for drilling.

“I firmly believe that, you know, if there was a magic wand to wave, I’d be waving it,” Bush said.

In the absence of a magic wand, people are forced to adjust to the higher prices in their own ways.

Kathleen Neeley, visual communications major, said, to combat the high prices at the gas pump, she is forced to drive less.

“I can’t drive down to Norman to do legitimate projects for school because of the high gas prices,” she said.

Neeley said she doesn’t fill up every week. Instead, she said, she usually stops at the pump once or twice a week, getting just enough gas to get her to and from school.

Neeley said she doesn’t inderstand why the prices are so high.

Marty Ludlum, economics professor, said fuel prices are going up mainly because of speculation.

He said large oil companies and Organization of the Petroleum Exporting Countries are pushing up prices to make money in the short term.

“They all have the same general interest in making money,” Ludlum said.

“As a result, if all of them push for making money, then we have a rampant price increase like we have seen recently.”

In a press conference April 28, OPEC President Chakib Khelil said the price per barrel of oil rises $4 every time the U.S. dollar slips by 1 percent.

Ludlum said the declining value of the dollar is contributing to the rising gas prices.

“Relative price of gasoline in Europe and elsewhere has stayed about the same,” he said.

“But in America, [the price of oil] has gone way up because the oil [price] has gone up and the declining value of the dollar both make oil expensive now.”

Both Sens. John McCain and Hillary Clinton have suggested a suspension of federal tax on fuel over the summer months. Sen. Barack Obama said the tax suspension only would shorten the need for oil and save Americans very little in the end.

Ludlum agrees the tax suspension would only prolong an inevitable price hike.

He said consumers would only save 18 cents per gallon of gas, and that money saved would be taken away from infrastructure projects, such as improving roads and bridges.

“It is like charging something on a credit card,” Ludlum said.

“At the moment you feel better because you still have money in your pocket, but the bill is going to be due.”

If there will be a drastic change in fuel prices, it will be after the presidential election in November, he said.

In the meantime, Ludlum recommends riding mass transportation or establishing an informal carpool to take away the burden of gas prices.

“We need to do something on campus at the start of next semester to get folks organized so you can find someone with roughly the schedule as you (and traveling in the same direction),” he said.

Staff Writer Brian Schroeder can be reached at StaffWriter1@occc.edu.

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