Oil, Gas Prices Rise Across US
- Olivia Abernathy
- 1 hour ago
- 3 min read
Oil prices rose across the United States due to conflict with Iran, making noticeable changes to gas prices.
The average price of regular unleaded gas in Nashville on Friday was $3.62 per gallon, according to the American Automobile Association. By contrast, one week ago it was $3.25 and one month ago it was $2.57.
“In general, oil prices can result in some disruptions to an individual's living… they tend to have a larger impact on those individuals who fall in the low-income category. Students tend to be a part of that category,” said Colin Cannonier, professor of economics at Belmont and director of the Faculty Fellows program.
The price of Brent crude, the global benchmark for oil, spiked from $70 per barrel to almost $120 per barrel on Monday. As of Friday, Brent crude is trading at about $100 per barrel.
The overall economic impact ultimately depends on how long prices remain higher.
“If these oil prices are short term in nature, then generally we may not see such a big impact. But if the increases are sustained and they prolong for weeks and months and even beyond a year, then we can see those disruptions heavily impacting individuals,” said Cannonier.
Some Belmont students wonder if they can afford higher fuel prices and worry about the shift it can pose to their cost of living.
“I think I would have to work more and make time for that,” said freshman Ella Starkweather.
“It would be hard because then I have less time to do homework and everything. And I'm a bio major, so I have a lot of schoolwork."
Freshman Ahmed Hatem isn’t worried about having to work more, but he is worried about draining his savings, he said.
“I was working to save money so that maybe I could travel in the summer or in the winter. That fund is probably what's going to get cut unfortunately if stuff keeps getting worse,” said Hatem.
Because of the uptick in costs, Belmont’s tuition may eventually rise at a higher rate than the annual 2% inflation increase, but whether it will and to what extent is unclear right now.
“The longer they rise, then it would mean that the university may have to reallocate funds towards addressing those increased operational costs. To that extent and how long that occurs may have some implications for tuition,” said Cannonier.
However, the link between oil prices and tuition is not direct or straightforward, he said. Tuition can also depend on labor wages, enrollment and other factors.
John Malone, assistant vice president for financial operations, and Robert Chavez, director of facilities management services, reassured students.
“The cost of these and other essential goods is something the university monitors closely as part of its overall budget planning. Belmont takes a holistic approach to budgeting, factoring in a wide range of variables each year… Fluctuations in energy prices are one of many inputs considered as part of that larger picture,” said April Hefner, vice president for marketing and communications, on behalf of Malone and Chavez.
Along with the price of gas, oil impacts factory production, energy production, air travel, shipping, food and more. All of these can be a pipeline to college students’ wallets.
While experts can’t predict the long-term impacts of rising oil prices, students may need to adjust their spending habits.
“When prices rise and wages either do not rise… or do not rise in the same proportion as prices, then what that means is that... our purchasing power falls. The same income will not be able to take you as far as it used to,” said Cannonier.
Written by Olivia Abernathy