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  The Digital Collegian - Published independently by students at Penn State NEWS
[ Friday, March 18, 2005 ]

Experts say prices of gas will stay high
Trend due to change of seasons, demand

For The Collegian

As part of a nationwide trend, State College drivers continue to be affected by an increase in gas prices.

Greg Palazzari, owner of Greg's Sunoco, 605 University Drive, said prices at his gas station have increased by 10 cents since last spring.

"Our prices were about $1.92 last year," he said.

"Now they're as high as $2.05 and we're predicting they will go as high as $2.15 for the summer."

According to www.fuelgaugereport.com, unleaded fuel in Pennsylvania costs, on average, $2.038 per gallon compared to last year's average $1.709.

Energy Information Administration (EIA) Economist Jonathan Cogan said gas prices in Pennsylvania and nationwide will not decrease anytime soon.

"Prices will remain high through the summer with some relief in the fall, but no dramatic drop off," Cogan said.

Pennsylvania AAA Federation Executive Director Ted Leonard said seasons also affect gas prices.

"More people travel and [travel] farther in the nicer weather," Leonard said. "The price at the pump will continue to creep up [in summer]."

But Leonard said the need to travel during the spring and summer months is not the only reason that gas prices will continue to rise.

"Refineries are switching to summer blends of gasoline, a cleaner burning gas for warmer weather that cuts down on evaporative emissions," he said, adding that the summer blend is more expensive.

EIA Economist Jack Bournazian said the supply has risen to 85 million barrels per day, and gas demand is up to 84.5 million barrels each day.

"Worldwide demand [for gasoline] matched worldwide production," Bournazian said. "Companies who can produce an excess of gas are limiting it to keep the prices up."

Larry Johnsonbaugh, manager of Graham's Exxon, 815 S. Allen St., said business has decreased by 25 percent from last year due to expensive gas prices.

"Every little penny hurts in this day and age," he said. "Students are now more apt to take the bus."

Prices at Graham's Exxon have increased by 25 cents from last spring but are expected to level off at $2.25 or $2.50 a gallon in the middle of the summer, Johnsonbaugh said.

James Curtis, supervisor of Penn's Mobil, 705 S. Atherton St., said his prices have also increased by 12 cents since last year. He added that his business has not been negatively affected by the price increase but he hopes prices will decrease in the next few months.

Cogan said crude oil has risen to $54.90 per barrel from last year's $36.53 per barrel. As a result, gas now costs about $2.05 per gallon, 33.2 cents higher than one year ago.

Leonard said that although high gas prices are a burden, there are several ways that drivers can save money including carpooling, using mass transportation, riding a bike and maintaining adequate tire pressure.




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Updated: Friday, March 18, 2005  12:27:03 PM  -4
Requested: Saturday, September 06, 2008  9:04:32 PM  -4
Created: Wednesday, May 07, 2008  6:52:45 PM  -4