Gas prices are rising to record highs in Milwaukee and across the country, but consumer concerns are not rising comparably.
Prices in the Milwaukee area reached $2.29 per gallon yesterday, according to Jason Poews, co-founder of GasBuddy.com.
"For the Milwaukee area, that's actually all-time high," Poews said. "Pretty much everywhere in the United States we've been seeing close to record-level gas prices."
GasBuddy operates 173 Web sites where volunteers call in to report local stations selling the cheapest — or most expensive — gas. GasBuddy serves the Milwaukee area through MilwaukeeGasPrices.com.
Although gas stations are displaying increasingly high fuel costs, it does not appear these prices are causing customers to change their driving habits.
"Folks are not going to cancel a weekend getaway or summer vacation because it costs $10 more for a tank of gas," said Mike Bie, spokesman with the American Automobile Association's Wisconsin office.
Bie said the association recorded gas prices comparable to current highs in Wisconsin last Memorial Day.
"Our records showed travel was not affected much or at all by the high prices," he said.
High gas prices do not seem to be hindering students' spring break plans. Joe Scapellato, senior in the College of Arts & Sciences, said he is driving about 16 hours to Savannah, Ga., over break.
"It's still cheaper than taking a plane," Scapellato said. "You know you're going to take a hit on gas, but you just suck it up."
But while consumers may not be very concerned about rising gas prices, experts are.
Poews said gas is currently expensive because of increasingly high crude oil costs. Crude oil makes up about half the cost of gas.
Crude oil now costs between $53-$55 per barrel, and some analysts are expecting it to reach $80 per barrel before prices decline, according to Poews.
Bie added rising crude oil prices do not immediately raise the price of gas.
"It takes a little time for this price to affect the gas pump," Bie said. "Right now, there's no foreseeable drop, but that's impossible to predict."
A drop does not seem possible in the near future, according to Poews. He said high prices in March are not typical and probably mean a continuation of elevated prices at least until Memorial Day.
"It concerns me that we're seeing high gas prices right now," Poews said. "We usually see lower gas prices in early March. We typically see price increases in April and May when demand goes up."
Though high prices now seem to be a bad sign, Bie said some economists believe the prices are over-inflated and will naturally self-adjust.
"A lot of people make forecasts and projections, but the market changes every day," he said.
And even with current gas prices in the $2.10-$2.20 range, Poews said the actual all-time gas price high would be closer to $2.75-$2.80 when adjusted for inflation.
He said regardless of the exact fuel costs and which numbers are highest or lowest, the certainty is that "we are going to be paying a lot for gas this summer."
This article appeared in The Marquette Tribune on Mar. 17 2005.