Gas At $4 A Gallon? Economists Say It's Possible

If you think gas prices are high enough already, some economists warn you haven't seen anything yet.

They say unleaded gas could be selling for as much as $4 a gallon by this spring.

So with that looming, how will those who spend a lot of money on gas, like school systems and city governments, handle the extra cost?

Right now, a gallon of regular unleaded gas is already going for more than $3 at gas stations around Lexington.

Imagine having to fill up a school bus with diesel fuel, which is even more expensive now than regular gas.

"If we bought a tanker of fuel today, it would cost us about $3.32 a gallon. We don't pay federal tax," Jim Cleaver, Director of Transportation for Bourbon County Schools says.

With a fleet of buses that only get 8 to 10 miles per gallon, the money adds up quickly.

"It would definitely have an impact on the school system because we allot so much money for fuel, and we've allotted $200,000," Cleaver says. "We already spent $140,000 so we're going to have to keep the buses running to get the kids here."

Cleaver says Bourbon County has already cut bus routes to "a bare minimum."

"The money is going to have to come from somewhere, which means other areas of the school system may suffer," he said.

Cleaver says Bourbon County may not be able to buy a new bus for at least a year.

Meanwhile, Lexington-Fayette Urban County Government officials say if the price of gas went up one dollar, it would cost them another $150,000 a month.

Garbage trucks and fire trucks are naturally gas guzzlers, and the large number of police cars require officials to spend lots of money on gas.


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by chris Location: ky on Mar 1, 2008 at 05:42 AM
    you people need to wake up.even if you stay home for a week and don't buy gas that is not going to make a difference to the oil companies.they are making their money off of the trucks,trains and airplanes.diesel is what is left after gasoline is refined.Gas is cheap so that people will get out and boost the so called economy.these trucks and trains and planes have to move and when you fill a truck up for over 800 dollars and these locomotives that have 2000 gallon tanks they are making money.But when you go to the store and buy what every you need you will pay dearly for it.That is why you are paying 5 dollars for a gallon of milk.ohh btw gas bandit,this is funny,maybe you can tell us all how to get gas out of newer cars since they all have a screen inside the filler neck.You cannot steal gas from a new car.the screen stops anything from going into the tank.
  • by Andy on Mar 1, 2008 at 04:47 AM
    Watch what happens when we stop buying so much gas,by buying small cars.The price will fall and the SUV's will come lumbering back as all ways.History will repeat its self.
  • by POOHBEAR Location: PIKE CO. on Mar 1, 2008 at 04:46 AM
    OK FOLKS,, WHAT ABOUT THE VOLUNTEER FIRE DEPTS AND FIRE FIGHTERS... WHATS GOING TO HAPPEN WHEN THEY CAN'T COME TO YOU IN YOUR TIME OF NEED BECAUSE THEY CAN'T AFFORD THE GAS AND FUEL TO RESPOND TO YOU AND YOUR FAMILY ??? ANY WAY IT'S A CHAIN REACTION FUEL GOES UP YOU PAY MORE TO DRIVE.. OHH THE UTILITY BILLS WENT UP BECAUSE FUEL WENT UP..THEN... GROCERY'S WENT UP BECAUSE FUEL WENT UP...VEHICLE INS/HEALTH INS/HOME OWNERS INS AND WHAT EVER ELSE THATS INSURABLE WENT UP BECAUSE FUEL WENT UP...CLOTHES AND SHOES WENT UP BECAUSE FUEL WENT UP.. ALL HOME PRODUCTS AND VEHICLE PRODUCTS WENT UP BECAUSE FUEL WENT UP...YOU GET THE IDEA WHEN FUEL GOES UP SO DOES EVERTHING ELSE BUT THE PAY DAY !!!! AT $4 BUCKS A GAL. FOR GAS AND FUEL AT $4.50 OR BETTER I SEE THE ECONOMY COMING TO A FAST STOP AND A LOT OF JOB LOSSES EVEN IN THE COAL INDUSTRY BECAUSE THE MINED COAL CAN'T BE TRUCKED TO THE PREP PLANTS FOR CLEANING AND SHIPMENT BY RAIL BECAUSE NO BODY CAN AFORD THE FUEL OR EVEN THE GAS TO GET TO WORK!
  • by THE GAS BANDIT Location: MAY STRICK AGIN on Feb 29, 2008 at 07:42 PM
    QUIT CRYIN AN START PUMPIN Im SETTIN HERE WAITIN FOR THE WORKIN MAN TO GO TO BED SO I CAN GET SUM FREE GAS SO QUIT CRYIN U BABIES SO EASY A HILLBILLY CAN DO IT
  • by Steve Location: Lexington on Feb 29, 2008 at 02:30 PM
    Did anyone see Pres. Bush's comment last night when he was asked about this, more than 24 hours after it was originally reported in the AP? He said he hadn't heard that!!! It's really sad when someone who has the world's brightest economists giving him daily economy updates obviously doesn't read them or even get briefed on them when we're in a recession (and he still refuses to call it that). How are we expected to come through things like this when our leadership is blind and dumb to the problems we are facing. How can anyone believe he cares about the common man who has to struggle to pay these prices when he doesn't even hear the things that affect us the most? In my humble opinion, the economy is job #1, and the rest can be dealt with as time permits. Draining 4 billion dollars a month in Iraq certainly isn't helping our economy here when the money can be used to provide tax breaks to those who need it and help businesses to thrive again.
  • by Fred Location: Lexington on Feb 29, 2008 at 01:48 PM
    To Chris @ The Pump - $6 for Spaldings doughnuts is pricey, but OOOOOOOOOOOhhhhhh, so worth it... :)
  • by Anonymous on Feb 29, 2008 at 12:49 PM
    UK top twenty research college They live off health insurance and sports hhhmmmmm What's that place off newtown pike?
  • by Diana Location: Somerset on Feb 29, 2008 at 11:58 AM
    Gas is high, but Diesel is what delivers our products to the stores. It is higher than gas and when diesel goes up, everything else goes up. Have you noticed the prices on items? Everything has gone up. If gas was the only thing that increased would be bad enough but EVERYTHING has gone up.
  • by I have a question... on Feb 29, 2008 at 11:21 AM
    for Working Mom from Pike County; are you related to johnny from ky? Both of you think there is such a word as "haft." Gas prices aren't the problem; illiteracy is the problem. If you're illiterate, you surely won't get a job that pays enough money to make ends meet.
  • by Note to firefoxgirl on Feb 29, 2008 at 11:17 AM
    Hey, when god sends you that check in the mail, please give me the return address on the envelope so I can get some of that too!

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