Libya unrest could cost you more at the pump

Dr. David Dubofsky
Dr. David Dubofsky

By Maira Ansari - bio | email

LOUISVILLE, KY (WAVE) – What is happening half a world away is affecting us here at home. The next time you fill up your car, you may get a little sticker shock. Gas prices have jumped once again. One finance expert says what's going on in Libya is partly to blame.

With signs of Moammar Gadhafi's hold on Libya getting weaker, what's growing stronger is frustration over gas prices.

"The price of gas will continue to cycle up, it won't be smooth," said U of L finance professor, Dr. David Dubofsky. "It will go up, and come down, and go up. But an over and upward rising trend."

Egypt, Bahrain, and Yemen, are sites of other protests, but they are not major oil producers. Dubofsky says Libya is which is why markets are jittery.

"Libya is in terms of oil reserves, Libya ranks 10th in the world," said Dubofksy.

According to, in Louisville, regular gasoline is selling for $3.11 per gallon, compared with $2.97 per gallon a week ago and $2.56 per gallon a year ago. The national average for regular unleaded has surged to $3.16.

"You'll see gasoline prices go up to $3.50, maybe $3.70 a gallon, that could happen in the next week or two," said Dubofsky

The jump at the pump has a direct impact on his students.

"I certainly talk about it in classes," said Dubofsky.

"It's a whole world away, so you don't think about it that much," said UofL student Michael Pryor.

"I think our students are more concerned with getting jobs," said Dubofsky. "With that said, higher oil prices are not going to help their ability to get jobs."

"There is always a strong chance that the price will continue to increase, there are a lot of other things that can happen in two years too," said UofL student Lindsey Laporte. "For anything, it's hard to predict that far in the future, I don't' know if I'd worry about it just yet."

One of the companies that has the most at stake in Libya is BP. They are among a number of oil and gas firms that have suspended operations in Libya and evacuated foreign workers from the country in response to the escalating political unrest.

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