Prices hit commuter students Gas

www.indianastatesman.com By Beth White Indiana Statesman January 15, 2003

Gasoline prices are predicted to reach an average $1.54 a gallon by mid-spring; however, current prices are already putting a dent into students' wallets.

Gas prices currently average $1.36 a gallon in Terre Haute, but over the past three weeks, prices have risen around six cents per gallon.

"I think it's ridiculous," Shaquanda Allen, a junior criminology major, said. Allen said that, as a commuter student, she puts at least $10 of gas in her car every three days.

Allen has already cut out unnecessary driving and has eliminated driving at night to attempt to save on gas money.

"I only drive to necessary places, such as to school, to take my daughter to school and to the grocery store," Allen said.

Although Terre Haute' s prices are below the national average price for a gallon of gasoline - currently $1.48 - the Midwest region traditionally has higher gas prices than the rest of the United States.

The Midwest uses ethanol gasoline, made primarily of corn, instead of methyl tertiary butyl ether, used by the rest of the United States.

The price-hike can be attributed to a few factors. One is the six-week oil strike in Venezuela, depleting 1.5 million barrels a day from U.S. imports. OPEC's boost of 1.5 million barrels a day in attempt to help will not reach the United States for another 45 days, according to the Energy Information Administration. Another factor is the threat of war in Iraq .

"If we go to war with Iraq, I know (higher gas prices) are going to happen," said Chris Snyder, junior management information systems major. "I remember when prices went up during the last war."

Snyder is from the Buffalo, N.Y., area, and he said that although gas prices are high in Terre Haute, he noticed a big difference between the two cities. He said gas is around $1.65 a gallon in Buffalo.

Snyder commutes from south Terre Haute and says the drive takes around 20 minutes. He said he has already begun limiting driving and purposefully scheduled his classes only on Tuesday and Thursday so he wouldn't have to drive to campus every day.

Mike Potts, freshman criminology major, commutes 95 miles from Washington, Ind., to and from ISU.

Potts said he notices a price variation from county to county, and gas is about a dime cheaper in Terre Haute than Washington. He also said that although his car gets fair gas mileage, he has limited his excess driving "a lot." The excess money Potts has had to spend on gas has put a strain on other financial freedoms, such as eating out.

What the money for each gallon of gasoline pays for, according to the U.S. Department of Energy Web site:

18 percent pays for distribution, marketing costs and benefits.

30 percent pays taxes, including federal excise tax, which averages 18.4 cents a gallon; state excise tax, which averages 19.96 cents a gallon; and other taxes.

11 percent pays for refining costs and profits.

41 percent pays crude oil suppliers.

(Due to rounding, percentages do not add up to 100%.)