‘Extreme’ uncertainty over gas prices, experts say. How high could they go in Wichita?
With Kansas’ average gas price sitting at $3.75, an average price over $5 in the next three months wouldn’t be out of the question, one expert says.
“I wouldn’t expect it to go much over $4 in the next month, you know, barring some very extreme event,” said Lance Bachmeier, a professor of economics at Kansas State University. “But I think in terms of the next three months, you know, $5 (to) $5.50 wouldn’t be out of the question.”
As tension between Iran and the United States continues, the U.S. has seen the average gas price increase by more than a dollar compared with this time last year, according to numbers from AAA. The average price in the country this time last year sat at $3.18. It is now $4.30.
In Wichita, the average gas price one year ago was about $2.90. It is now $3.72, according to AAA. Although some Wichitans have accepted the increase, others have voiced concerns about the effect of the high price on their budgets.
And Bachmeier told The Eagle that gas prices haven’t increased as much as they could have during the tension — which leaves room for more increases.
“I would say we’re really lucky that gas prices are as low as . . . they have been,” Bachmeier said. “And so that’s one reason I’d expect them to keep going up. I think they just haven’t gone up as much as they should have, because people thought this would be over soon.
“I mean, just tremendous amounts of uncertainty.”
Patrick De Haan with GasBuddy told The Eagle that an average of $4 could be the reality in Kansas by Memorial Day if the strait remains closed.
“There’s a distinct possibility that we could see record setting prices,” De Haan said.
But unfortunately, gas prices are hard to predict.
“The thing I’ve been emphasizing . . . is just the degree of uncertainty that we have,” Bachmeier said. “We don’t really know . . . when it’s going to be over. We don’t know what that will look like.”
De Haan made the same point.
“It’s obviously extremely difficult to be accurate, and that’s something that I obviously strive to do,” De Haan said. “Obviously the uncertainty is, you know, it’s extreme.”
What Wichitans have to say about gas prices
The Eagle visited the QuikTrip at Douglas and Washington Thursday morning and spoke with customers at the pumps to see what they had to say about the rising prices. On that day, unleaded gas was $3.69/gallon and diesel sat at $4.89/gallon. It has since risen higher.
Tosha Potts said the higher gas prices have made her become more picky about what she purchases.
“What am I going to spend $100 on? Because for me to go even a couple of hours out of town, that’s $100 there and back,” Potts said. “I mean, I’m not dying or starving, but a little more choosy about what I’m going to do.”
“I remember when my kids were young, and I had to pay for day care and all that. That would have meant that I couldn’t go see my family,” Potts said.
Mark Koch uses diesel fuel. “I’ve lived with the cost increase,” he said.
Koch said he usually gets gas at Dillons where he can use the fuel points. That day, he was at QuikTrip, so decided to just get enough gas for what he needed.
“I just needed to get to a destination, so (I got) three gallons,” Koch said.
Marci Werne said that she hasn’t paid much attention to the high prices, but her husband has noticed the increases.
“His business does rely on filling lots of cars with gas,” Werne said.
Werne drives a Tahoe, so she said that she’s used to the high gas prices that come along with a large car.
“It just happens and we handle it. Hopefully it won’t be like that forever,” Werne said.
Miguel Ibarra said that the high gas prices have changed the way he gets gas. Instead of filling the whole tank, he’s been filling it a bit at a time whenever he needs it.
“It definitely does impact how much I pump and how often,” Ibarra said. “Normally I could go days or weeks, and now I’ll have to stop more often, instead of filling up (completely.)”
The Eagle’s Allison Campbell contributed reporting.
