Cost at the pump on the rise worldwide

Published 4:00 pm Saturday, April 8, 2023

On April 2, major oil giants such as Saudi Arabia announced surprise production cuts in the amount of 1.15 million barrels per day beginning in May and lasting until the end of the year.

This development will impact gas prices worldwide, and motorists should anticipate paying more at the pump. This impact can already be seen with gas prices ranging from $3.19 up to $3.39 per gallon across Athens-Limestone as of April 7.

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This time last year Americans were feeling the impact of gas prices nearing and exceeding $5 in North Alabama, but have had a reprieve from exceptionally high fuel prices since the holidays.

In June last year, Athens City department heads were increasing line items for fuel and oil in their proposed FY2023 budgets after seeing how prices rose in 2022.

“Our FY22 budget was impacted more since it was during that period gas prices skyrocketed. We increased our fuel budget for FY23 to cover the increase. Overall, our fuel cost doubled from FY21 to FY22,” Blair Davis, manager of the electrical department said.

The FY2023 budget lines took into account volatile gas prices and isn’t facing the same strain that the FY2022 budget did — yet.

“First quarter we were only over 3 percent, If fuel goes up and we will be busier, we may see a problem develop,” Street Department Superintendent Dolph Bradford said.

The fuel budget doubled from FY21 to FY23 for the electric department.

City of Athens Communication Specialist told The News Courier in June 2022 that “because of TVA’s budget year, the Electric Department is the one department that operates on a different budget year timeline. Its budget starts in July (all others start in October), so its Fiscal 2023 budget has already been passed. Blair Davis, manager of the Electric Department, said he increased fuel costs for Fiscal 2023 by 100 percent.”

Hollman went on to explain, “In June, the Street Department reported it was at 66.7 percent of its budget year, but for fuel, it was at 82 percent of its budget. The Sanitation Department reported in June it had already used 91 percent of its budget for fuel and oil.”

The Athens Police Department had also been impacted by the high gas prices last fiscal year.

“Athens Police Chief Floyd Johnson said officers are taking minor reports by phone to cut down on trips. The department has also cut back on out-of-town trips to pick up someone on select minor traffic warrants,” Hollman said in June.

There are actions motorists can take to increase fuel economy and consequently ease the strain of high gas prices:

  • Drive the speed limit.
  • Avoid hard acceleration.
  • Avoid engine idling.
  • Adjust speed to time traffic lights to reduce repeated breaking and acceleration.
  • Coast to stop lights.
  • If operating an automatic transmission, accelerate with light throttle so the transmission can upshift into higher gears sooner, reducing engine RPM.
  • If operating a manual transmission, upshift as soon as you can without “lugging” the engine. Skip-shift when practical.
  • Run errands in one trip and outside of high-traffic times.
  • Minimize use of air conditioning.

For more information on fuel economy, contact your vehicle manufacturer or car insurance provider.