Low global demand equals lower gas prices

Kalli Bubb/The News Gas prices lower as the price of crude oil drops.
Kalli Bubb/The News Gas prices lower as the price of crude oil drops.

Kalli Bubb/The News
Gas prices lower as the price of crude oil drops.

The recent drop  in gas prices can be attributed the Iraqi decision to lower prices on crude oil, according to USA TODAY.

This decision mirrors Saudi Arabian and Iranian decisions to lower their crude oil prices as well.

USA TODAY stated the Organization of Petroleum Exporting Countries is destabilizing other exporters’ prices and sustaining production.

OPEC’s yield is increasing, but worldwide demand has diminished. North American needs have increased, and with less competition, gas prices have sunk, USA TODAY said.

Students have found themselves in with more money as cost of fuel has decreased.

Some on-campus students have benefitted from lower gas prices.

Kyle Schenck, freshman from Boston, Ky., said it normally took about $50 to fill his car, but now it takes about $35.

“With the prices right now I’m less stingy with my gas—not enough to make me want to go home every weekend but more willing to drive to places at shorter distances than, say, the beginning of the year.”

Some students remain unaffected by the drop.

Freshman Tori May from Providence, Ky., said the change will not make her more likely to travel on the weekends, and it doesn’t take as much gas for her to get home because she lives closer than most students.

“But I do get better mileage than others so I tend to drive,” May said.

Murray State is reaching record enrollment according to Fred Deitz, associate vice president of Enrollment Management. With an increase in the number of students attending the University, the number of commuters affected by lower prices will also increase. Students who travel from distant hometowns to Murray will also be affected.

As of Oct. 1, 2014, the mileage reimbursement rate for employee travel and student group travel decreased to $0.46 per mile. This rate will remain in effect through Dec. 31.

Jerry O’Bryan, transportation specialist of Facilities Management, said that the dropping gas prices saves Murray State money and decreases prices of University goods as well as improves the economy in the surrounding area.

Julia Stimson and Elizabeth Travis, sophomores from Mayfield, Ky., agreed. Even with the decrease in gas prices, the cost of parking tags in addition to the costs of living on campus makes the cost of gas a greater burden.

Travis said it could be worse. She said she is glad the prices are not increasing.

Story by Teddy Martin, Contributing writer