Spiraling gas prices seemingly haven't curtailed driving, SEMO econ prof says

Johnny Cash had a best-selling song, "Five Feet High and Rising," a first-person account recalling his family's experience fleeing floodwaters threatening their home in 1937. Eventually, the legendary singer-songwriter's lyrics reveal when the water got too high, the family made a decision to seek higher ground.

Economists wonder when Americans — in the face of steadily increasing pump prices — will decide to drive less or choose to drive more fuel-efficient vehicles.

"Taken as a whole, it looks like we haven't seen consumers really crack in terms of overall spending," said economist David Yaskewich, chairman of the Department of Accounting, Economics and Finance at Southeast Missouri State University.

"The question is, when does (a change) take place with general inflation and persistent gas price hikes likely to rise in the summer? At some point, we're likely to see some drop."

Prices at the pump are higher, on a flat, not adjusted for inflation basis, than they've ever been in U.S. history.

Wednesday's U.S. average price for a gallon of regular, according to AAA, is $4.67, up 5 cents from Tuesday.

Escalation

• One week ago: $4.59
• One month ago: $4.18
• One year ago: $3.04

"So far, pent-up urge to travel caused by the pandemic outweighs high pump prices for many consumers," AAA's Andrew Cross said.

Cross echoed Yaskewich's query about motorists' decision-making in the near future.

"If pump prices keep rising, will people alter their summer travel plans? That remains to be seen," Cross noted.

Crude oil prices were seen above $115 per barrel Wednesday with domestic gas demand expected to climb as motorists fuel up for a three-month-long travel season while school is out, AAA noted.

U.S. prices

Georgia boasted the lowest average statewide price in the U.S. on Wednesday for a gallon of regular at $4.16.

Missouri is currently sixth lowest in the country at $4.24.

Highest prices are concentrated mainly, but not entirely, in the West.

California is highest at $6.19, with Oregon, Washington, Hawaii, Alaska, Nevada and Illinois all above the $5 level.

Locally

GasBuddy.com, in its Wednesday report, shows area service stations have settled into prices north of $4 per gallon for regular.

• Cape Girardeau: prices range from $4.09 to $4.39.
• Jackson: $4.07 to $4.29.
• Scott City: $4.19 to $4.39.
• Perryville: $$4.14 to $4.29.

Prices are not linked with specific service stations by Southeast Missourian reporting staff because of rapid volatility in prices and because of the lag time in publication.

Alternatives

Transportation policy group Southeast Metropolitan Planning Organization (SEMPO) is expected to release a final draft of its electric vehicle (EV) readiness plan in September. An early draft is now being studied by SEMPO officials.

The timing of continued gas price rises and the coming EV report has not escaped the attention of SEMPO executive director Alex McElroy.

"I think it's hard not to notice the two are aligning at the same time. Our (SEMPO) board had recognized a shift in prioritization through the current (Biden) administration towards EVs and we want to make sure our region is prepared," McElroy told the Southeast Missourian.

Additional comments from Yaskewich and McElroy will be noted in an article in next week's Business section.