Pain at the pump

A recent social media meme shows a couple enjoying a candlelight dinner with convenience store gas pumps in the background. The caption reads: “Take me someplace expensive.”
A year ago at this time the average price of unleaded gasoline in South Dakota was hovering around $2 a gallon. However, as of last week, according to the Gas Buddy website, the average price for a gallon of gas statewide was $3.27 and an even higher $3.46 a gallon here  in Custer County.
In fact, according to AAA Auto Club, Custer is just one of nine southwestern counties that have some of the highest gas prices in the state. Prices in those counties ranged from $3.44 to $3.63 per gallon. Also included in that group are Pennington, Fall River, Lawrence and Meade counties, the latter of which had the highest average price in all of West River at $3.63. Lawrence County was next highest with an average price per gallon of $3.57.
It could be worse, however.
South Dakota’s fuel prices are eight cents cheaper than the national average. The highest prices in the nation are in California, where the state average was $4.56 last week. That’s cheap compared to the remote Pacific Coast Highway town of Gorda, where the sole gas station was offering a gallon of regular unleaded for $7.59. Motorists will have to dig even deeper into their wallets for premium which is priced at $8.50. Many will pay it, however, because it’s 40 miles to the next gas station.
Surprisingly, even Hawaii, which has no oil refineries and where all fuel must be brought in by ship, has lower prices than the Golden State. There, the average price at the pump last week was $4.24 per gallon.
California’s western neighbors are also feeling the pain at the pump. Oregon averaged $3.75 a gallon, Washington $3.91, Alaska $3.70 and Nevada’s average was $3.91.
Things are not much better in several northeastern states. New Yorkers were paying $3.51 a gallon. Pennsylvania was at $3.56 and Connecticut at $3.48 per gallon.
Meanwhile, Oklahomans are paying the least in the nation for gasoline. The average price there last week was just barely under $3 a gallon and Texas was next cheapest at $3.03 a gallon for a statewide average according to Gas Buddy.
The recognized reason for the rise in prices at the pump is the cost of a barrel of crude oil. According to Barron’s Magazine, prices of U.S. crude rose above $80 for the first time in seven years last month and there seems to be no end in sight.  
Pointing to the precipitous rise in prices since the first of the year when the Joe Biden Administration took over the White House, many are blaming the administration’s energy policies for the increases. They cite moves like canceling the XL Pipeline and the administration’s climate change agenda as reasons for fossil fuels becoming more expensive.
Evidence of the public’s frustration with the situation and the desire to pin the blame on the president have even shown up locally. Several gas pumps in Custer have been decorated with stickers picturing Biden pointing to the price dial and saying “I did that.”
Shawn Steward, spokesman for AAA South Dakota, told KELOLand part of the reason for the hike in crude oil price is a shortage of oil producers in the U.S.
That reason for the rising prices is backed up by the U.S. Energy Information Administration, which reports that “gasoline prices tend to increase when the available supply of gasoline decreases relative to real or expected gasoline demand or consumption.”
Whatever the reason for the increase in gas prices, however, the situation doesn’t look to be improving any time soon.
Custer County Highway Superintendent Jesse Doyle told the County Commission recently he had been advised by a fuel supplier that prices could eventually reach $10 a gallon.
While saying he has no way of knowing whether that prediction is accurate, Doyle noted, “All indications are that petroleum products are going to keep increasing in price but we don’t know that for sure because it depends on a lot of factors.”
Doyle said the uncertainty makes his job as an administrator in charge of purchasing fuel for county equipment and vehicles that much harder.
“It’s impossible to budget for fuel when there’s a potential that it will increase four fold,” he said. “Nobody knows. To put it bluntly, if pump prices get to that $10 mark, our transportation is going to come to a screeching halt. People aren’t going to be able to afford to go anywhere.”
Doyle said it’s his opinion that the rise in fuel prices is directly related to the “shutdown of coal” and the administration’s push toward electric vehicles.
Noting that approximately 45 percent of the nation’s electricity comes from coal fired plants, he said the push toward a higher reliance on electrical power doesn’t make sense.
“How can we increase our reliance on electricity and decrease our use of coal?” he asked. “It’s not possible.”