Gas prices around Starkville and across the state have continued to drop significantly from last year, with the area’s average price much lower than the national average.
The national average of gas prices is lower than $2.50 per gallon, according to a recent article by The Associated Press.
MSU assistant professor of finance and economics Mike Highfield said gas prices are lower in the Southeast than in the North United States.
At Strange Brew Coffeehouse on Highway 12 in Starkville, gas has gone down to $2.29 per gallon.
“Gas is cheaper in Mississippi because we are close to New Orleans and Texas, where most of the country’s oil refineries are located,” Highfield said. “It takes lower transport costs to get gas to us than it does to transport gas to the North.”
The decrease in gas prices is a result of several factors, Highfield said.
“Gas prices are mainly based on light, sweet crude oil as a commodity,” he said.
Supply and demand, geopolitical concerns and economic factors also determine the rise and fall of gas prices, he said.
“Whether or not Venezuela, the ninth largest supplier of oil in the country, decides to cut the price of oil to the U.S. is definitely a factor in gas prices,” he said.
“There is some fear that Hugo Chavez (president of Venezuela) will do something to increase prices.”
Another reason for the decrease in gas prices is that the driving season is at its end, Highfield said.
“In terms of travel, as the number of travelers goes down, the amount of gas in demand goes down,” he said.
Different types of gasoline are used throughout the country, so it may be more expensive at certain places because of the amount of additives the gasoline contains, Highfield said.
“California includes additives in its gas to help prevent smog, so gas is more expensive there,” he said.
Sophomore architecture major Jesse O’Quinn said the low gas prices are nice because everyone can finally get a break, but the trend probably will not last for long.
“It’s probably a little misleading because they will most likely raise the prices up, possibly even higher than before,” O’Quinn said.
Junior architecture major Jason Agostinelli said he feels happy about the decrease in gas prices, but he still wishes they would go down even more.
“When you get 12 miles to the gallon, anything over $2 is ridiculous,” Agostinelli said.
The price of gas is something everyone has to deal with, so people should plan their budgets accordingly, Highfield said.
“Prices probably won’t get lower than $1.50 per gallon in our lifetimes.”