Gas prices rise again

By Jonathan Starkey
Staff Reporter

Surely most people have noticed. Gas prices are on the rise again. But – as of now – the rises have been worse than last year’s spike in prices or have at least come earlier than expected.

A fuel gauge report released by AAA on Wednesday reported that the average price for regular unleaded gas in Delaware had increased 11 cents in one week – and 33 cents in a month – to $2.74, a 60 cent increase from this same time last year.

That number is still, however, 6 cents less than the national average of $2.80 for regular unleaded gas. But as demand rises during the summer travel season, AAA spokesperson Ela Alkalaj said that first state residents and visitors can expect prices to continue to increase.

“The $3 mark is not that far off,” Alkalaj said. “We definitely do expect to see the fourth consecutive summer of record-high prices.”

Delaware’s prices didn’t reach $3 until early September of last year, after Hurricane Katrina devastated the Gulf Coast. Alkalaj said that AAA expects gas prices in Delaware this year to reach $3 by Memorial Day weekend. Delaware’s average regular unleaded prices peaked at $3.23 on Sept. 7 of last year, eclipsing the national average high of $3.06, which was recorded two days earlier.

“We’re working and putting all of our money into gas,” said Rose Ripa, a Selbyville resident. “I’m really ticked off.”

Ripa said that because of the rising gas prices she’s been forced her to cut down on trips to Wilmington visit her sick, elderly mother.

“Trips are pretty much out of the question. I can’t afford to go back and forth,” she said.

Doug MacIntyre, a senior oil market analyst with the Energy Information Administration, the statistical arm of the U.S. Department of Energy, said that rising crude oil prices, a rise in demand, and maintenance projects in oil refineries, halting the refineries’ ability to work have contributed to this year’s rise in prices.

“We’ve got a lot more of the refineries down for maintenance so we’re making less gasoline than we would, just as demand is starting to pick up,” MacIntyre said. “That’s making every gallon of gasoline more expensive.”

The price for a barrel of crude oil – the substance refineries use to make gasoline – rose to a record $71 on Tuesday. Major importers of the oil to the U.S. include Nigeria, Venezuela, Saudi Arabia, Canada and Mexico. Because of the continuing civil disputes in Nigeria and problematic U.S. relations with Venezuela, companies have been buying the oil in bulk, preparing for a potential problem. Bulk purchasing has elevated demand for the oil, and, in turn, raised its prices, MacIntyre said. Disruption in the Middle East region has also contributed to rising prices on the worldwide market, he added.

“All of these things are sort of factoring in,” MacIntyre said. “People are worried about what might happen.”

In this time of uncertainty surrounding gas prices, criticism has arisen about oil companies’ profits. While prices rose last year before and after Hurricane Katrina, for instance, Exxon Mobil reported record-breaking profits.

That company reported profits in excess of $36 billion in 2005, a number that was up from about $25 billion in 2004.

Still, despite the reasoning surrounding the rise in prices, local residents are just trying to cope. Marvin Townsend, a Georgetown correctional officer and Ocean View resident said it used to cost him about $40 to fill up the gas tank in his truck. It now costs about $60.

“It’s crazy,” Townsend said, “outrageous. I might have to get an economical car or motorcycle. I wish (the prices) would get down below $1.”