Gas prices fall after attacks
By Heather Mangold
City Editor
Hoosier motorists are feeling the effects of the
Sept. 11 terrorist attacks when they visit local gas pumps.
Regular unleaded gasoline is down 41.5 cents per
gallon from one month ago Monday, according to the AAA Hoosier Motor
Club.
Greg Seiter, media relations director
for the club, said there are two main reasons that gasoline prices have
fallen. For one, the price of crude oil fell to $22 per barrel immediately
following the attacks. Prices previous to that day were between $30
and $31 per barrel, said Seiter.
In addition to decreased crude oil costs, travelers'
responses to the attacks affected the cost of gasoline.
"Travel basically came to a standstill a few days
following the terrorist attacks," said Seiter.
As people traveled less, the demand for petroleum
decreased drastically, causing gasoline prices to fall, said Seiter.
"It's still not where it was, we're seeing now
a very plentiful supply of gasoline and the overall cost of gasoline
is down," he said.
William Stedman, manager of the Clark service station
on West State Street in West Lafayette, said that gasoline prices at
his station were indeed feeling the effects of nervous travelers.
"The price was heading down, but everyone is getting
comfortable to travel so prices are going back up," said Stedman. "Prices
go back up when people travel."
Seiter said that based on his knowledge of the
industry and past experiences, he does not expect prices to change much.
"Prices always fluctuate, but there is nothing
foreseeable in the near future for dramatic price increases," said Seiter.
Seiter said that if President Bush and the United
States government were to bomb a major oil producing company such as
Iran, gasoline prices in America could be affected, but for now, there
is no reason to expect drastic change.
During the Gulf War, when the United States first
began the Gulf War initiative, gas prices jumped up and down quite a
bit, said Seiter.
"You have uncertainty in the economy," said Seiter.
"It's just people reacting to a major event like that."
Gasoline prices skyrocketed after terrorists attacked
the nation on Sept. 11. Some Indiana gas stations reported selling their
gasoline at costs over $2 a gallon. As a result, Indiana attorney general
Steven Carter immediately responded to gasoline price gouging throughout
Indiana by threatening service station owners with legal action if refunds
were not distributed.
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