Even if you didn't pay any attention to recent national business news, you probably learned that crude oil prices shot through the roof last week when you gassed up your vehicle over the weekend.
With crude oil prices hovering at a record-breaking $90 per barrel, some travel experts say Richmonders can expect to feel a bit of extra pain over the next several weeks as the high oil prices begin to trickle down to the local pumps.
As of Monday afternoon, according to AAA Mid Atlantic, the average price per gallon in the Richmond region has risen to $2.65, which is about 6 cents higher than it was Oct. 15. Statewide, the average is $2.69 per gallon.
"Virginia gas prices on average went up 2 cents since Friday and we expect to continue to see that trend because at some point [the price at the pump] is going to have to catch up with the crude oil prices because it is extremely high right now," said AAA Mid-Atlantic spokesperson Windy VanCuren.
Though VanCuren couldn't say how high gas prices in the area are forecast to rise, she did say locals can expect pump prices to continue to rise through the end of the year.
"It is really, really hard to forecast," she said. "It depends on what is going on in the world. Crude oil supplies could get worse or it could get better if the government decided to tap into the U.S. Strategic Oil Reserves. It is kind of a play-it-by-ear thing, but the unfortunate news is we are most likely to see [gas prices] continue to go up."
And with Thanksgiving and the upcoming holiday season approaching, VanCuren said high gas prices could have an effect on travel plans as well as holiday spending.
"Based on past behavior, believe it or not, people still like their automobiles and their freedom so they are still going to be driving," she said. "However, you will see people cut back on other expenses. If they do go anywhere for Thanksgiving or for the Christmas and New Year's holiday, they may not go as far of a distance or they may choose to stay in a cheaper hotel or with their friends and families to save money that way."
On the other hand, some commuters won't feel the immediate effect at all. GRTC Transit Company customers, for instance, will not have to worry about paying a higher fare because of the recent oil price hike, at least not at this time. A GRTC spokesperson said the company buys its diesel fuel on a fixed price contract basis, which is currently set at $2.19 per gallon until the contract is renegotiated in March 2008.
To help with conservation efforts, state agencies, many of which use large fleets of state-funded automobiles, may soon start to curtail their gasoline usage and travel plans. Virginia Department of Transportation spokesperson Dawn Eischen said VDOT employees have utilized cost-effective measures to help conserve both money and energy resources in the past when gasoline prices reached astronomical levels.
"When gas prices are high we have to prioritize our own travel to conferences and things like that and we have to carpool a lot more," Eischen said. "I think that is pretty much indicative of every state agency. We have all been asked to cut down on our gas consumption and carpool a little bit more and stick close to home for meetings and do more video conferences and all of that."
She said VDOT also has to curtail some of its road maintenance efforts when oil prices are high.
"Gas prices affect us more with the prices of asphalt and some of the materials that we use," she said. "That is where we see the biggest hit. Those prices increase for us so when we have to go out and purchase them it costs more. We have to be a little bit more selective on what we do and we have to really prioritize things.
There is some good news in all of this high priced oil talk, however. Pat yourself on the back for living and commuting in the Old Dominion. Currently, Virginia is actually the fifth cheapest place in the United States to buy gasoline. New Jersey, at $2.58 per gallon, has the cheapest gas and Hawaii, at $3.19 per gallon, is the most expensive place to fill up in the United States.
To give you a global perspective on where the United States stands as far as gas prices are concerned, in American dollars today, a gallon of gas in Amsterdam would cost you about $6.50. In London, a gallon of petrol would cost $5.79, and in Japan you would pay $4.24. On the other end of the spectrum, a gallon in Kuwait City costs 78 cents and in Venezuela you would only pay 14 cents per gallon.
Beat High Gas Prices
Here are some tips from AAA Mid-Atlantic to help you increase your vehicle's gas mileage.
Shop with your steering wheel. Gas prices vary station to station and just because it is a certain price at one station, it could be a little bit cheaper a few miles down the road.
Make sure your tires are properly inflated.
Keep your vehicle properly maintained, besides having the correct tire pressure, make sure your car has the proper fluid levels and that all hoses and belts are in good running order.
Avoid quick starts and stops. You are just burning extra gas each time.
Don't speed.