Consumer Reaction to Rising Gas Prices, Now and Then

In July 1979, when I was writing for the Middlesex News in Framingham, Mass., we were facing a "gas crisis." Many gas stations' pumps ran dry and they shut down, with panic buying resulting. The lines at open stations stretched unbelievable distances, drawing out the state police for monitoring. Massachusetts barred people from filling up if their tank was not at least half empty. Some gas stations went further, implementing minimum $10 purchase requirements. I went to the gas pumps to interview motorists and gas station operators about rising prices and dwindling supplies.

Last week, Yahoo! News asked some of its contributors to interview consumers about how 2011's impending $5 per gallon gas prices will affect them. How does consumer reaction to the gas situation then and now compare?

What Consumers Were Saying About Gas Prices and Availability in 1979

"With gasoline lines getting shorter and prices approaching $1 per gallon, area residents are convinced that the shortage is a hoax masterminded by the oil companies," the 1979 article began.

David Hussey, a Marlboro, Mass. gas station employee, predicted gas prices would reach $1.20 per gallon in a few weeks time, and the long gas lines would be history. Joe Baranofsy of Reading, Mass. agreed that oil companies were manipulating supplies to artificially drive up prices. He noted that if there were a bona fide oil crisis, motor oil prices would have risen along with gasoline, but that hadn't happened.

1979's high prices did not necessarily lead to conservation. Virginia Thorsen of Ashland, Mass. organized her errands to minimize trips as gas prices rose, explaining, "It's not worth it to save $1 at a sale if you have to spend $2 for gas."

But Baranofsky and his friend John O'Connor of Melrose, Mass. said they sometimes drove around aimlessly to waste gas in order to qualify for a fill up under the half-tank rule.

Those $1 per gallon prices getting consumers' hackles up in 1979 would translate into $3.04 in 2011 dollars (Federal Reserve calculator). Mushrooming prices in 2011 pack a larger budgetary wallop with pump prices topping $4 a gallon in most of the country. How are consumers reacting?

What Consumers Say about Gas Prices Now

Yahoo! News contributor Sherry Wight interviewed San Francisco area residents to get their take on some of the highest gas prices in the nation. Gas was already selling for $4.22 and consumers were worried about reports that it might soar to $5 per gallon. Just like in 1979, some suspected price manipulation.

If gas prices reached $5 per gallon, photographer Christina Gray from Pleasanton said she'd throw a party. "These prices are already such a joke that we may as well have some fun while we're paying through the nose and supporting big oil's seven-figure salaries, right?"

Mike Jarrett, a Herrin, Ill. hospital clerk, also suspected foul play. He told Y!CN's Tamara L. Morris, "There's an investigation going on but we all know the oil companies will pay off the government investigators, so it's just a waste of time. It's too bad everyone is greedy -- "

But the responses in 2011 show times have changed. With green lifestyles more prevalent, some residents are considering alternative modes of travel.

Florida student Angela Frederick told Y!CN's Grace Shreve, "My fiance is in the military, and he literally walks to work now to save money -- "

Lakewood, Colo., missionary personnel coordinator Cheryl Colchin told Y!CN's Rebecca Livermore, "I'd check into purchasing a Velomobile -- a recumbent bike with a fiberglass body on it. More aerodynamic and faster than a regular bike that can be ridden on the streets without a special license."

Jacob Willard, a pharmacy analyst from Kansas City may revert to habits that are old for him but new for many cash-strapped Americans. "I grew up in Holland and biked everywhere I went. It may be time for me to get my spoiled behind back on the seat of a bike," he said.

Carol Bengle Gilbert writes about consumer issues for the Yahoo! Contributor Network.

Sources:

Bengle, Carol, "Residents say gas shortage a hoax," Middlesex News, July 9, 1979.
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