Pain at the pump
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Publisher’s Note: The following is an analysis of nationwide issues impacting the greater southwest Iowa community.
By Jeff Snyder
MOUNT AYR, Iowa — Over the last five weeks area residents have seen a dramatic spike in gasoline prices largely due to events taking place in the Middle East.
Those old enough to remember the gas crisis of the mid 1970s understand all too well the impact that foreign events can have on a household budget. Typically, the Record News likes to focus on local issues and generally avoids national issues until such time that these actions find their way onto our kitchen tables.
We asked a number of area residents what impact the gas price crisis is having on their day-to-day lives received mixed responses. Some indicated that they are taking less unnecessary trips, while others have said that they have not altered their routines at all. However, everyone was unhappy.
We asked, the employees at Casey’s, one of the areas few gas stations, how customers are reacting to the prices increases.
“No one is happy,” an employee said. “They think it’s Casey’s that is raising the prices.”
They’re just blaming us,” another employee said.
Employees at fuel locations often take the brunt of criticisms as if they are the ones solely responsible for rising prices. They are not.
Geopolitical issues often take months, if not years to find their way into rural America. The agricultural community has long touted their independence and insulation from such issues, but even they have chimed in on their discontent. Issues that are outside of the control of the locals are particularly frustrating and ultimately will find their way into the supply chains that start in the fields of Iowa.
Local governments have already been presented with fuel proposals to maintain various mechanical needs throughout the county. Bid pricing has been predicated on current (at the time the bid was submitted) but the numbers are a constant moving target. Bidders however work on margins and not the actual current pricing, so price fluctuations merely rise and fall as market conditions change.
Places like Mount Ayr Golf and Country Club will also be impacted at some point as they have a member benefit that includes fuel for their golf carts. At this point no action is planned, but they know that if pricing persists future action may be required.
The old saying is “that all government is local” has a particularly meaning for Ringgold County and in fact all the surrounding counties throughout Iowa. Iowa’s ethanol production status as one of the leaders in the country places an even greater emphasis on the importance of biofuels and its impacts on the economy. Farmers and ranchers need fuel to operate. They need the equipment to run plows and drive their utility vehicles as they check on the calving process. They need fuel for the trucks that transport finished products to market and they need fuel to power their personal vehicles as well.
Politicians are able to set the tone during these times, and in fact have control over at least a part of the solution. One such solution is the lifting of the moratorium on ethanol rich fuels for summertime use. Ethanol fuels are considered less environmentally friendly and have historically been restricted in summer. Taking off these restrictions temporarily could help reduce that sticker shock that normally comes with summer blend fuels.
While it is doubtful that Iowa will have a direct impact on global conflicts, it is not inconceivable that Iowa’s vast agricultural assets, when combined with other domestic producers, could eventually clear a path for future solutions. This would require a serious discussion with state regulators and their national counterparts.
Currently, the United States is sitting on a 500 year supply of coal. Perhaps they could invest in ways to utilize this asset in a more environmentally friendly way, thereby taking some heat off black gold as Jedd called it.
With he advent of advanced data centers and the rapid expansion in the AI future, the stresses on nationwide utility grids will undoubtedly force a fresh discussion of on-hand resources. They say necessity is the mother of invention. Maybe it’s time to do some of that mother stuff right now.
