Gas isn’t running out, but money to pay for it is

The school year has officially started. While I have been consumed with everyday activities… The school year has officially started. While I have been consumed with everyday activities such as apartment chores, picking up my dry cleaning and calling my grandmother, I’ve also looked into the tedious task of picking out my parents’ offering for a graduation gift: a new car and a dog.

The dog was easy: a chocolate brown malte-poodle. The car was a completely different story. While I am really thankful to be looking for this gift, it seems that my friends with cars have halfway convinced me that I shouldn’t be. The culprit that has turned them completely against their vehicles – and mine – is the steadily increasing price of gas.

How could gas prices raise an average of 6.2 cents in two weeks? Or rather, what could cause an increase of 73 cents since last year?

It seems that a lot of people are pointing fingers at the individual residing in the White House, the war – which could also be an extension of the former – and certain countries. But I think we all need to consider the complexities of the oil market and what specifically causes the shock and disbelief we experience when we drive by our local stations.

The No. 1 thing that affects gas prices is crude oil inventories. Although the United States is the world’s second-largest producer of oil, crude oil inventories affect us because we are heavily reliant on foreign sources.

The organization that impacts these inventories most is the Organization of the Petroleum Exporting Countries. OPEC consists of 11 nations that hold two-thirds of the world’s oil supply and contribute about 40 percent of oil production. One problem comes when they decide to reduce production, which causes gasoline prices to skyrocket – basically the supply-and-demand concept.

The other major factors that affect gas prices can be deduced by simply observing the financial breakdown of each gallon of gas. The largest chunk, 45 percent, goes to the crude oil suppliers, or in other words, OPEC. Then there are refining costs that account for 13 percent.

After crude oil is transported and refined, it is then sent to distribution points and lastly, to gas stations. The combined cost of transportation and marketing the oil adds another 13 percent. As always, there are federal and local taxes that amount to 31 percent. The rest of your money is allotted to the gas station that sells the gas so that they can obtain a profit.

Because the world cannot be held at a constant, we must also include world events, wars and weather, which are all current factors.

While the government undoubtedly plays a role, it doesn’t exactly help that we consume 20 million barrels of oil per day. This translates to 65 billion gallons of motor gasoline each year, and that figure increases by 2.6 percent annually.

But let’s face it, we depend on gas not just for our own transportation, but for the transportation of the goods we consume each day. That means there is a potential that we could experience the same shock at the supermarket or in our local coffee shop. I don’t know about you, but I question whether I have the mental fortitude to undertake all this distress. We have to do something to stop it.

It could be as simple as walking to work. Other strides can be made when we make decisions about buying a car. We can take another glance at cars that run on diesel engines, because they are 25 percent more efficient than regular cars. Or we can invest in a hybrid and not only get the advantage of low gas prices, but also qualify for a federal tax deduction.

As college students, we have the power to affect change when it comes to gas prices, and we are not powerless, despite the complexities that surround an issue that we are all undeniably affected by.

So, after considering all factors, while I haven’t decided on a brand yet, I’m definitely going to go with a car with a diesel or hybrid engine because in the long run, it costs my community – and me – a lot less, financially and mentally.

E-mail Rose at sba1@pitt.edu.