While Gas Prices Drop, So Do Oil Prices
Catch-22 for Alaskans
ANCHORAGE - Around Anchorage the price at the pump is dropping and drivers are pumped up about the lower costs.
“It's awesome, yeah. I wish they'd go down more,” said Katherine Helm.
While filling your tank now might mean more money in your wallet, that’s not the case for the state.
“It's a double edged sword when oil prices rise it helps the state budget. When it goes down it helps the price at the pump,” said Bruce Tangeman, the Deputy Commissioner for the Department of Revenue.
About 90% of the state’s budget comes from oil. The 2013 spending plan is built around the spring-estimated prices of $110 per barrel. On Friday crude was about $93 a barrel.
“Sunday is the first day of the fiscal year so it's not time to jump off a bridge yet. But we understand and we've been through this before where prices go up and down quite a bit. We've seen significant changes from month to month in the past,” said Tangeman.
The low prices at the pump won’t last long. By the end of Friday, crude prices spiked 9%.