Kelly Fontenot takes the bus to campus everyday to save a few bucks on gas.But Fontenot, education sophomore, and other students may start thinking about driving to campus again since gas prices in town — and around the country — continue to plunge. Government officials said the U.S. had its largest weekly drop in history as the average gasoline price per gallon plummeted 33 cents last week. The price of regular gasoline per gallon has not been this low since Feb. 25. The average price for gasoline in the U.S. is $2.91. The Gulf Coast has the lowest prices at $2.73, according to the weekly government fuel updates at Energy Information Administration. The average price of gas Tuesday in Baton Rouge was $3 while the average in the state was $2.93, according to the AAA Daily Fuel Gauge Report.Don Redman, Louisiana AAA spokesman, said Baton Rouge and Lafayette have the highest average gas prices in the state. Some gas station prices around campus are still as high as $3.19 per gallon for regular unleaded. The Shell station on Nicholson Drive is charging $3.19 a gallon for regular unleaded while the Shell Station on Highland Road at LSU Avenue is $2.99. The Chevron on Nicholson Drive is $2.98 for regular gas per gallon. James Richardson, economics professor and director of the Public Administration Institute in the E.J. Ourso College of Business, said Baton Rouge has higher gas prices because it’s a more populated area where the demand for gas is higher.Richardson said Hurricane Gustav’s effect on gas prices isn’t a factor anymore.”If you chose to drive farther out, they would lower their prices,” he said. “But a person who lives on campus is not going to do that.” Students, like Fontenot, will likely keep seeing relief at the pump because gas prices are expected to drop well below $3 per gallon. Richardson said the demand for fuel has decreased because consumers have cut back on their spending. He said people are choosing to walk, carpool and buy more fuel-efficient cars. “The fact that [gas] increased made people cut back on driving,” he said.Fontenot said she tries to find the lowest gas price in town. “I watch gas prices,” Fontenot said. “The farther away I go from campus, the lower they get.” Richardson said gas prices likely will not skyrocket back to $4 per gallon. He said as the demand for fuel decreased, the price for a barrel of oil — which he estimated makes up more than 50 percent of gas — also decreased.John Smith, petroleum engineering professor, said supply and demand in the U.S. affects gas prices, but the primary reason for the decrease is tied to supply and demand in the world supply.The worldwide demand for crude oil affects the price of gas in the U.S., Smith said. Archana Vallabhaneni, computer science graduate student, said she has noticed the change in gas prices and isn’t sure how she will spend the extra money.”It affects my weekly budget, but I won’t drive more.” she said.Matt Cook, chemical engineering freshman, said he is worried prices will go back up as soon as people adjust to the new price.”I don’t think it’s permanent,” he said.—-Contact Joy Lukachick at [email protected]
Students save money as gas prices continue to fall
By Joy Lukachick
Contributing Writer
Contributing Writer
October 21, 2008