GAS
continued from page 1A
University junior Brian Taylor said
the retail gas prices are the highest he
can recall.
"I've never had to pay these kinds
of prices," he said. "I remember
when the price hit $ 1.60, it was a big
deal. Now if it was that price I'd do
cartwheels."
Junior Rea Laredo agreed. She said
she has taken an increasingly com
mon approach to dealing with the
high gas prices — searching for the
What we pay for in
a gallon of regular gasoline
(April 2004) Retail Price: $1.80/sallon
Taxes
Distribution &
Marketing
Refining
Crude Oil
SOURCE: U.S. Energy Information Administration
Tanyia Johnson Design Editor
lowest price
"When 1 filled up last Thursday
night, I went gas shopping," Laredo
said. "The lowest I saw on Gateway
in Springfield was $2.25 at am/pm,
so I went to Costco, because I have a
Costco card and the gas is at least 5
cents cheaper (per gallon). The lines
are long but it's worth the wait."
American Automobile Associa
tion spokesman Elliott Eki said Ore
gon ranks third as the state with the
most expensive gasoline. California
and Hawaii are the only states with
higher prices.
"Oregon has an average gas price
of $2.27 per gallon, seven cents
higher then last week," Eki said. "We
expect Oregon prices to stay above
$2 for the remainder of the summer,
but there is no predictor of how high
prices may go."
However, AAA surveys show high
prices have not affected consumer
demand, Eki said.
"We are also expecting a record
number of Americans to travel this
upcoming holiday weekend and at
least a third are planning to drive,"
he said.
Crude oil prices are as high as $40
a barrel, and the Organization of the
Petroleum Exporting Countries offi
cials said producers were powerless
to manage a spike driven by factors
outside OPEC's control, according
to a May 20 Reuters article.
OPEC is planning informal talks
Saturday in Amsterdam to discuss a
Saudi proposal to raise production
quotas by at least 6 percent — the
equivalent of 1.5 million barrels dai
ly, according to the article.
OPEC leaders said the organiza
tion can do little to dampen prices,
which are now up more than 25 per
cent this year, with growth in oil de
mand fueled by international eco
nomic expansion.
OPEC President Purnomo Yus
giantoro of Indonesia blamed mar
ket forces and refinery bottlenecks in
the United States.
University economics Professor
Glen Waddell, who studies the inter
national oil market, said that part of
the reason for the high gas prices is
consumers may be anticipating the
higher summertime prices with in
creased consumption now.
"At some level, consumers must be
willing to pay these higher prices. Oth
erwise, such prolonged price spikes
would not be expected," Waddell said.
"If you taught me year after year that
you would keep buying gasoline from
me, I’d pass whatever cost increases
(there were) onto you too."
But Waddell said OPEC is not re
sponsible for creating the conditions
for a price spike — retail prices are
determined by other factors than
crude oil supplies.
Jenny Sherman Freelance Photographer
Although gas prices rose this week to record levels, consumers are still buying: Ralph
Schuessler pumps gas Thursday at the 76 Station on Coburg Road.
Meanwnue, presidential candi
date John Kerry faulted President
Bush on Tuesday for failing to clamp
down on gas prices, according to
The Associated Press. Kerry said
Bush had broken campaign promis
es to pressure oil-producing nations
to increase production to help con
trol soaring prices.
"Where is the president?" Kerry
said in Portland, where gasoline is as
much as $2.31 a gallon "We need a
president who is fighting for the
American worker, the American
tamily at the tuel pump.
Laredo said there will likely be a
greater impact on the gas prices.
"I'm blaming it on Bush," she
said. "At this price (level) everything
is going to be affected. When you go
to the supermarket all the prices are
going to be higher, it's all going to
cost more because the cost of trans
portation is going up."
Contact the
business/science/technology reporter
at stevenneuman@dailyemerald.com.
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