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Blame it on Libya
Gas prices rising along with temperatures
022811 GAS PRICES 01 web
Gas stations at Northside Drive and North Main Street reflect the national trend of rising gas prices. The main factor driving up prices right now is the concern over all the unrest and turmoil in the Middle East, said Jessica Brady, spokesperson for AAA Auto Club South. The concern is whether or not this unrest could spread and affect oil production or exports in neighboring countries."

Though there is no reported supply shortage of oil and gas, prices at the pump spiked in the last week as a result of political turmoil in the oil-producing nation Libya.

Concerns regarding Libya's oil output resulted in oil and gas prices rising world-wide, including a 19-cent jump in Georgia's average price-per-gallon. The average price to open the week was at $3.28 and most establishments in Statesboro are charging more than $3.35.

The price increase mirrors a 19-cent bump in the national average, which is now $3.35.

"The main factor driving up prices right now is the concern over all the unrest and turmoil in the Middle East," said Jessica Brady, spokesperson for AAA Auto Club South. "The concern is whether or not this unrest could spread and affect oil production or exports in neighboring countries. It already has in Libya."

Libya's oil exports have been disrupted, according to a price brief released by AAA, dipping from 1.6 million barrels of crude oil per day to approximately one million barrels.

"What has really caused the spike is the fact that Libya's supplies, or exports, were cut by two thirds," said Brady. "The other reason is that crude oil is trading at $100 per barrel. Those factors combined, pushed prices up quite a bit."

According to OPEC, though, there is no shortage in supply because of increased production elsewhere. According to the AAA report, Saudi Arabia has increased output by more than nine million barrels a day.

"The Middle East accounts for about 35 percent of oil supply," Brady said. So even though there is no shortage currently, "the concern is: while turmoil and concern may be bearable now, how far will it escalate - especially at a time when demand will increase over the spring and summer seasons."

The daunting prices displayed on filling station marquees are more than 65 cents higher than they were at this time last year, and present a challenge to spending-conscious consumers.

"It is ridiculous," said Samantha Wilkinson, a Georgia Southern graduate who recently moved to Pooler for work.

"It costs me $100 to fill my truck. Or at least it used to," said Grant Watkins, as the meter zipped past $70 while filling his Ford F-150. "I don't know what it costs now. I barely have enough money to put gas in my truck."

Watkins, who attends classes at Georgia Southern University and works 25 hours each week in Statesboro, said he has started walking to and from classes to save fuel.

Stormy Reddick, who travels to Dublin for her job at a hospital, said she plans on changing vehicles for her commute - The idea is to start using her mother's 27 miles-per-gallon Ford Taurus instead of a sports car, she said.

"I just can't afford it," said Reddick. "I don't understand. When BP was losing millions of gallons every day, gas was as cheap as it had been in a while."

According to AAA, relief at the pump is likely not forthcoming.

"This week, it looks like retail prices will continue to increase," said Brady. "Just how high they will get is really uncertain at this point because we really don't know how much things will escalate, or if they will, at some point, settle."

"We will probably, eventually, hit $4 per gallon. I don't think we will see it in the next couple of weeks, but at some point over the spring and summer-time we could hit that price range," she said.

With prices seemingly only getting higher, some residents will limit time spent on the road.

"I think it is bad that prices keep going up just because of speculation," said Billy Lewis, a resident of Brooklet. "You can barely get a quarter of a tank with $20."

"We will just go out much less," he said. "We will come to town just once a week, get everything we need in one shot and stay home."

Jeff Harrison can be reached at (912) 489-9454.

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