Steven Falls
Web Editor
Gasoline prices in southern California and across the country are hitting record numbers and a decrease in such prices appears unlikely nowhere in the near future.
Julius Walecki, associate professor of economics at the University of La Verne, predicts gas prices will remain high.
“Our energy policy is weak at best and we don’t invest enough in developing alternative sources of energy,” Walecki said. “It doesn’t seem that we’ll be getting any big breaks soon unless there is a significant change in any of these variables.”
With people paying as much as $2.50 per gallon in some areas, many wonder what is causing this continuous increase.
“I’m no economics major, but I always hear that the conflict in Iraq and other incidents in the world have some type of effect on it,” said Irene Orozco, Ontario resident.
Walecki agrees that additional factors such as uncertainty and the situation in Iraq have contributed to price hikes, but he said the problem has more to do with supply and demand.
“On the demand side there is an increase in oil consumption from developed countries,” Walecki said. “China is growing at a very high rate and competing with other countries for oil.”
Even with the demand from large countries such as China and other rapidly developing countries, the supply for oil never really appears to be in jeopardy. The Organization for the Petroleum Exporting Countries, which oversees and controls oil production for the entire world, is a major factor in the increase of prices.
“OPEC tries to control and often limit production to keep prices up,” Walecki said.
According to www.gaspricewatch.com the average cost for a gallon of gas in the United States has soared to $2.28 per gallon this week. The highest price of $3.44 per gallon recorded in Baker, California and the lowest price of $1.88 in Chugwater, Wyoming.
Patrick Reyes, an entrepreneur from Las Vegas recently paid $2.86 per gallon at a station in Barstow, but he has a different opinion on the price hikes.
“It is something that I can’t control so I don’t worry about it,” Reyes said. “I just have to make a few adjustments I guess to make up for it.”
There are many different things one can do to curb personal spending on gasoline. Carpooling seems to be the most popular option among those who make grueling commutes to work during the week.
“I know some people who drive to the same area I do for work,” Orozco said. “We take turns driving so that definitely helps a lot.”
Riding bikes, limiting leisure driving or choosing a fuel efficient vehicle are also clearly helpful.
With isolated California desert cities already breaking the $3.00 mark, it is only a matter of time before prices in suburban and city areas edge up there as well. Summer is right around the corner.
Steven Falls can be reached at sfalls21@msn.com.
