Gas prices sting commuters

May 3, 2005

DAWN DE BUSK/Frontiersman reporter

MAT-SU - Tony Bartek has devised a series of techniques for lowering his gas costs - adhering to more gas-efficient speeds, gassing up where prices are lowest, buying a more economical vehicle.

In 2001, the Elmendorf Air Force Base employee bought an Eagle and started leaving his Suburban and Buick at home. "It's the best of both worlds. It's four-wheel drive and it gets about 20 miles to the gallon," he said.

Bartek also limits the amount of time his car warms up during the winter months. "Some people at work let their cars warm up for 10 or 15 minutes. That's a lot of gas going out the door," he said.

Because Valley residents commute more than anyone else in the state, those people who live in the Mat-Su pay closer attention to gas prices than most Alaskans, according to Neal Fried, economist with the state Department of Labor and Work Force Development.

"People notice gas prices because they are filling their cars at least once a week. Most people would be able to tell you how much they paid for gas, but might not remember how much they spent on the last loaf of bread they bought," Fried said.

He said fuel costs have hit a historic high, although when those numbers are adjusted for inflation, there may be other times when gas was just as costly, he said.

The price of petroleum at the pumps jumped in the past six months when the price of a barrel of oil surged to $50 earlier this year.

"I used to be able to do $10 a day. Now it's $12. I drive slower, keeping it between 55 - 60 mph. That gains me about two to three miles to the gallon," Bartek said.

On the busy corner of the Parks Highway and Main Street, Tesoro 2Go sells regular unleaded for just above $2.29 a gallon. At the Butte Store, regular unleaded goes for about $2.36. Tesoro Alaska, located on the corner of the Glenn Highway and W. Arctic Avenue, sells its unleaded gasoline for about $2.35 per gallon.

People pass posted gas prices every day, which is another reason the cost of gas fuels conversation between people, almost as frequent a topic as the weather is, Fried said.

"People are used to looking at gas prices in penny denominations," he said. "It's a common denominator everyone can relate to. When you pick someone up from the airport, they look at the gas prices and say: 'Hey, that's less or that's more than what I pay.' "

Wasilla resident Dawnita Wheeler returned last week from a trip to Oregon.

"The gas prices were usually $2.50, and $2.43 was cheap. It made me appreciate gas prices here," said Wheeler, who lives in Wasilla and works at Matanuska Valley Federal Credit Union.

The so-called "elasticity" of a product measures how much people change their buying habits due to the cost, Fried explained. The elasticity of fuel runs fairly low, he said.

"For example, people can buy burger instead of steak. People's patterns don't change a whole lot in the short run. You don't have much of a choice," he said.

Troy Gruver, a Palmer resident who works on Elmendorf Air Force Base, says he doesn't pay attention to gas costs because he knows he has to gas up to get to work.

"I drive a car that gets good gas mileage, but if I had a truck, I'd still gas it up and drive it because I have to," Gruver said. He said he commutes on the Glenn Highway every day and sees a high percentage of trucks and SUVs.

Residents deal with gas prices as a fact of life. However, the inflated petroleum prices dictate long-range plans like purchasing a more economical car or curtailing a vacation that requires driving, according to Fried.

Bartek, who travels to his fish wheel in Chitna every summer, will be making the trip in the same car as his brother instead of taking separate vehicles.

Potential customers are not looking at the big trucks as much as the economical rides, according to an car dealership employee who didn't want to reveal his name or business.

Fried said it's hard to predict how much the prices could go up this summer, especially since the state's consumption numbers aren't released monthly as the national statistics for gas use are.

"The demand does grow typically as a whole during the summer. Alaska is a little more insulated. The railbelt is running at the national average," he said.

Even with high prices for fuel, national statistics show RV dealers are selling a high number of motor homes, Fried said.

"(High gas prices) could have an effect on tourists on the highway to Alaska. It could affect the number of people driving here as opposed to flying or taking a cruise ship," he said. "We're supposed to get a record number of cruise ships this summer."