According to AAA, motorists in the Buffalo area are paying around 10 cents per gallon above the national average. As of March 5, the price for regular unleaded was $1.82 per gallon in Buffalo compared to the national average of $1.72. Prices have increased by 4 cents per gallon since February, and 6 cents per gallon since 2003.

AAA says gasoline prices in the Buffalo area are currently record highs, but the spike at the pumps is not just a local problem. The Department of Energy has been monitoring the problem, and is concerned over rising costs. Currently, the department has a web site set up to answer consumer questions. While politicians are concerned, AAA spokeswoman Dianna Dibble believes the spikes did not come as a surprise.

“It's a disruption in production and distribution that we normally see at this time of year,” she said.

Meanwhile, Sen. Chuck Schumer says one of the reasons why Western New Yorkers are paying more is because the state is required to put an ethanol additive into the gas . The ethanol has to be shipped in and is expensive, which causes prices to rise. The federal government imposes the additive requirement. Schumer has asked the EPA for a waiver , which would allow motorists to save between 5 and 10 cents per gallon. If the state is awarded a waiver, it would have to be granted by the EPA.

Schumer also noted that having only four major national oil companies is a mistake. The recent mergers of Exxon/Mobil, and Texaco/Chevron, has left little competition. Since the United States relies heavily on oil from the Mid-East, he believes the country should shift its attention to getting oil from other places such as Russia, a country that wants to export, and Venezuela. The major reason the United States has a major interest in Middle Eastern oil is because that is where the major oil companies are focused. According to Buffalo State political science professor Dr. Simon Peter Gomez, the situation in Venezuela needs to be monitored.

“There is a recall initiative being considered on President Chavez. Six million names are on the recall form and the validity of the names is being assessed.  This has led to violence among the supporters of Chavez and those who oppose him and has curtailed Venezuelan oil production,” he said.

The cause

The American Petroleum Institute says there are several reasons for the spikes at the pump . Refiners are paying more for crude oil, which sells at more than $36 a barrel, and is the main component of gasoline . The price for crude oil has increased 19 cents per gallon since last December, and is the subject of a supply and demand system. OPEC has already cut production, and plans further cuts in April. Worldwide demand for oil has increased, causing supplies to be tight, which in turn has caused suppliers to engage in a bidding war for the product.

Ways to save

In a letter obtained from AAA's web site, Secretary of Energy Spencer Abraham says motorist knowledge is the key to saving money.

“As secretary of energy, I am working with AAA to encourage Americans to drive smarter, prepare their cars to operate more efficiently, and save fuel and money. Aware Americans can help protect themselves from volatile gasoline prices. I encourage you to look to AAA and the Department of Energy for information,” he wrote.

Motorists can save money just from traveling to and from work or school by following these guidelines:

• Combine errands with the daily commute.
• Leave earlier in the morning or later in the evening to avoid wasting gas while being stuck in traffic.
• Don't buy premium gas unless you have to. Most vehicles only require regular unleaded, so the upgrade is just a waste of money.
• The faster you drive, the more fuel your vehicle burns.
• Routinely maintain the vehicle.
• Don't waste gas shopping for lower gas prices.

The following fuel cost calculator allows motorists to estimate annual fuel costs for their vehicle:

http://www.fueleconomy.gov/
feg/savemoney.shtml

Although prices in the Buffalo area are above the national average, it could be a lot worse. Gas prices in California were selling for close to $3 per gallon.

Email: solana23@mail.buffalostate.edu