The Daily Collegian Online	 - Published independently by students at Penn State NEWS
[ Thursday, March 8, 2007 ]

Winter fuels higher gas prices across Northeast

Collegian Staff Writer

Repeated snowfall and below-freezing temperatures have students anticipating spring break, but recent gas price increases may cut into their vacation budgets.

Since the end of January, the price of a gallon of regular gasoline has risen 30 cents to an average of $2.51 in the New England area, and 34 cents to an average of $2.50 across the U.S., according to weekly reports from the Energy Information Administration (EIA). The East Coast had the largest one-week increase from Feb. 26 until Monday, with prices rising 15.4 cents.

New England's mild early winter allowed for an "inventory safety net" of oil to be established, according to This Week In Petroleum, a weekly EIA feature.

However, cold temperatures and winter storms have caused the reserves to be used up, leaving the region susceptible to further price increases should the cold weather persist, the feature said.

"If it's a real cold winter, we are going to be using a lot of energy, and there won't be stockpiles for the summer driving," said Russell Chuderewicz, Penn State economics professor.

Spring breakers traveling by plane, however, may have a little extra cash to throw down.

Although the airline industry's fuel consumption has grown from $44 billion in 2003 to $112 billion in 2006 and a projected $120 billion this year, according to the International Air Transport Association (IATA), fares have managed to keep from skyrocketing.



"Airlines have been put through some modest price increases, but in general the market hasn't allowed [higher ticket prices] because of competition," said IATA spokesman Steve Lott. "The airlines are being very careful that if they raise prices to offset fuel costs, it will chase away potential customers."

Lott also said as the warmer weather approaches, he expects travelers to shy away from Europe and the U.K., where the dollar is weak, and favor places like Canada and Mexico, where the dollar is strong.

Students have mixed reactions to the added expenses. Erica Livelsberger (junior-accounting) said the amount of driving she has to do for spring break has her limiting the rest of her time in the car.

Still, other students are not letting the extra dollars spent at the pump stop them from spring break plans.

Kelley Boyle (senior-marketing) said she will be driving home for just a day to see her parents before heading to the Philadelphia airport.

"The gas prices did not deter me at all," she said.


 



TOP  HOME
Blogs  About  Contact Us  Back Issues  Advertising 

Copyright © 2009 Collegian Inc.