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By Tim Brown, Operations Manager, County Information Project |
Fuel costs have previously been identified as one of the significant cost drivers contributing to local government budgetary growth. This growth is partially explained by an increased demand for local services, such as the need to maintain new roads or increase the number of sheriff patrols. In recent years, however, the overall growth in fuel costs for many counties is more likely a result of increased per gallon costs.
The United State Department of Energy collects data on the price of a variety of petroleum products ranging from barrels of crude oil to refined gasoline. The average gasoline prices for several states are available, including for Texas. The accompanying chart shows the average weekly retail price for gasoline in the state. It includes both conventional and reformulated regular gasoline; mid-grade and premium are not included.
The chart covers the period from June 5, 2000 to April 21, 2008. Over this time the retail price of gasoline in Texas increased 131.5 percent, from $1.474 to $3.412 per gallon. Prices have dipped and climbed over the eight-year period making predicting future prices difficult. For example, gas prices dipped to a low of $0.996 on December 24, 2001 before climbing over 32 percent to reach $1.317 on July 22, 2002. This year, from December 31, 2007 to April 21, 2008, the average price of a gallon of regular gasoline has already increased 17.3 percent.
These increases are even more startling when compared to increases in inflation or population. From June 2000 to March 2008 inflation3 increased 23.9 percent nationally. Although the 2008 estimates are not available at this time, the U.S. Census Bureau estimates the state’s population increased 14.6 percent from the April 1, 2000 census to July 1, 2007. While overall inflation and population increases can be major factors in rising county costs, they don’t always tell the whole story.