People gripe about it, yet still buy it.

Friday, March 10, 2000

People gripe about it, yet still buy it.

As the price of gasoline continues to rise, Austin residents, like others across the nation, are adjusting their driving expenses and their habits.

Prices at the pump have crossed the $1.50 a gallon threshold, hitting $1.53 on Thursday. Thursday’s price actually was a drop from the previous day across southeastern Minnesota.

Always a staple for conversation at the filling station, area attendants said most customers acknowledge the high prices, and even with the daily fluctuations, they realize it is out of most people’s hands.

"They’re joking about it," Cindy Ober said of customers at Ankeny’s convenience store on First Avenue SW. "There are people who come in and say that they’ll have to stay at home and keep the camper parked this summer, but they understand that nothing can be done."

Just over a year ago, the Organization of Petroleum Exporting Countries cut production of crude oil by 4.3 million barrels a day after prices dropped because of an extreme surplus and decreased demand. On Dec. 10, 1998, the price for a barrel of oil sat at $10.72. Since that date, oil prices have skyrocketed to $31.89 a barrel. According to the U.S. Energy Department, an additional production of 1.7 million barrels worldwide would drop the price of an oil barrel more than $6.

Worldwide consumption of oil is some 2 million barrels a day greater than the supply. According to experts in the Energy Department, the gasoline market is concerned as prices move into unknown territory.

At the pumps at Kwik Trip in Austin, most motorists shared sentiments when asked what they thought of the cost of driving, comparing it to bad medicine you just had to take.

"The prices just keep going up; it’s ridiculous," Sara McKenzie said while pumping gas Wednesday. "You notice it, but it’s one of those things you need and you have to budget for."

At truck stops along Interstate 90, semi-truck drivers, especially those contracted as independents, are feeling the pinch. The average cost to fill a semi with diesel fuel is about $300, depending upon the size of the fuel tank.

According to Geoff Baker, director of marketing for McFarland Truck Lines of Austin, the average price for diesel fuel in March 1999 was 96 cents. A year later, diesel-truck drivers are paying $1.49 a gallon. McFarland pumps some of their own gas, but about half the fuel purchased is while drivers are en route. Baker said that down the line, from trucker to transportation, contractor to consumer, each entity faces increased costs.

"The good news is that those who pay the cost of freight are understanding," he said. "The costs increase and those unfortunately have to get passed along to the consumer if the company is going to stay in business."