Gas Prices Pinch Peoria’s Wallet

Growing public concern over rising gas prices has prompted some action from the White House, but Peorians aren’t likely to see relief anytime soon.

Uprisings in Libya have given city residents a new reason to care about government, both abroad and at home. Libya exports crude oil to Italy, Germany, France and Spain, among other countries, and the U.S. imports about 40 percent of its crude oil from Europe before exporting back gasoline and diesel. In Asia, oil prices soared to almost $88 dollars per barrel. Hence, Libya’s ongoing uprisings have been felt in all 50 states. Gas prices in Peoria have been hovering around $3.85. Smaller towns outside the city, such as Eureka in Woodford County, have seen prices jump to $4.06 per gallon. The average price of gasoline per gallon in the U.S. is $3.17. Still, if the U.S. became cut off altogether from Libya’s oil supply, the United States still has over 700 million barrels of crude oil stored in the Strategic Petroleum Reserve, according to sources on ABC News, which gives the country a multi-year supply.

Amid the growing discomfort regarding gas prices, the Obama administration has initiated measures to increase oil production by extending the length of time for leases in the Gulf and off the coast of Alaska that were put in place by a temporary moratorium on drilling due to the BP oil spill. Oil leases last approximately 10 years. The administration hopes to decrease the amount of imported oil the United States consumes. Gas prices are still unlikely to immediately fall below $4.00, a price that is becoming more common in various areas of the country, which makes residents uneasy.

In conjunction with extending the existing leases, Obama continues to call on both parties to vote to eliminate the $4.4 billion in taxpayer subsidies to oil and gas companies. Eliminating tax breaks will raise the cost of companies for doing business and eventually lead to higher gas prices, some Republicans argue.

“It’s hard trying to budget gas prices in with everything else, especially when you have kids,” says Susan Beaver, a Peoria resident. “When you’ve got kids and unexpected things come up, there’s not a lot of extra money to go around once you fill up (at the gas station) for the week.”

Compounding the price problem is the start of summer vacations for families traveling on the road. Gas prices average nearly $4.00 per gallon nationwide on any given Saturday, according to the oil price information service.

“I have a five-year-old and a four-year-old who are begging to go to Disneyland, and somedays it’s like: Do I spend the money to take them on vacation, or do I fill up the gas tank for $80 a week?” says Teresa Treble of Peoria. “It’s a decision I don’t think we should have to make.”

Residents outside of Peoria are equally concerned with the rising prices—concerned but not surprised. “Well, I wouldn’t be shocked if we saw prices hit $4.50 a gallon or even $5.00,” says Eureka resident Mike Grub. “Once upon a time I never thought I’d see them hit $4.00. Now it’s done that. There’s not much stopping gas from gettin’ any hirer.”

Despite growing concern in the Midwest and the Obama administration’s efforts, Washington analysts say there’s not a whole lot that can be done to reduce the price of fuel, and some oil industry groups contend that more must be done to invoke a lasting change. The Republican House recently passed three bills—which the White House opposed and which the Senate with its Democratic majority is unlikely to pass due to environmental concerns—aimed at decreasing the price of fuel. Yet the GOP acknowledges the effects the legislation has will come slowly. And new drilling leases in Alaska and off the Gulf Coast would initiate drilling that would take at least one year to begin and another half decade to yield barrels of production, analysts say.

“Something has to change—for the better,” says Teresa. “But I’m not sure we can rely on the government to bring change that will actually help the people. Something’s gotta give soon, though. If not for my sake then for the sake of my little ones here.”

As with all things, change comes slowly.



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