The Digital Collegian - Published independently by students at Penn State NEWS
[ Friday, April 15, 2005 ]

High gas prices may mean less student travel

Collegian Staff Writer

Even though summer is time for road trips, students might have to rearrange their plans due to skyrocketing gas prices.

Jonathan Cogan, energy information specialist for the Energy Information Administration, said that from April to September, gas prices are projected to average $2.28 per gallon, an increase of 38 cents compared to last year. Cogan added that May's gas projection is supposed to peak at $2.35.

"We do expect to see some further price increases," Cogan said.

Cogan added the forecast for the summer's nationwide average price is $2.28, a 38-cent increase from last summer, but the increase in summer gas prices is not decreasing the demand for gas. "We expect to see strong demand this summer even with the high prices," Cogan said. "We expect record demand this summer."

Emily Hamel (freshman-broadcast journalism) said she did not think the gas price increases would influence many people's summer travel plans.

"People still want to go and have a good time," Hamel said.

However, Jennifer Betts (freshman-business) said she would only be modifying her summer travel plans slightly.

"I don't think it will affect my travel that much, but I'll probably take less long-distance trips," Betts said.

Ted Leonard, executive director of the Pennsylvania AAA Federation, said the current Pennsylvania statewide average is $2.22 per gallon for regular unleaded gas.

Leonard said the national average for regular unleaded gas was $2.26 on Wednesday. A month ago, that average was $2.03, compared to $1.78 at this time last year.

PHOTO: Michael Ghourdjian
PHOTO: Michael Ghourdjian
Already high, gas prices are expected to peak at $2.35 per gallon in May.

Cogan said that West Texas Intermediate (WTI), the most widely cited crude oil price for the U.S. market, is supposed to be 37 cents higher compared to last summer.

The summer blend of gasoline has stricter environmental regulations, so the summer gas blend is more difficult to manufacture because of its tendency to evaporate, Cogan said.

Therefore it is more expensive to produce.

While demand for gas is increasing, Cogan said it should be able to be met through inventory withdrawals, refineries and imports.

Jared Price (freshman-mechanical engineering) said he is going to try to conserve his gasoline usage because of the price increase.

"I will probably drive less and get rides with friends," Price said.

Larry Johnsonbaugh, manager of Graham's Exxon, 815 S. Allen St., said customers have noticed prices increasing everywhere.

Johnsonbaugh said the price increases did deter customers from purchasing the same amount of gasoline initially, but that effect has gone away.

Leonard said that Pennsylvania's gas prices are slightly lower than the national average, but that the average may be skewed by states such as California, which charges $2.64 per gallon for regular unleaded gas.

"We're pretty close to the median," Leonard said.

Cogan said that from now until 2006, gas prices are not supposed to dip below $2 per gallon.


GRAPHIC: Lindsey Zahuranec/Collegian
GRAPHIC: Lindsey Zahuranec/Collegian
SOURCE: Energy Information Administration

 



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