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For ethnic studies sophomore Amanda Sims, there is only one word to describe the current gas price: "ridiculous." She shells out about $150 per month to fill up her tank - almost double what she paid a few years ago.
Biology junior John Spence said his monthly budget is significantly affected by the rising cost of gasoline.
"It really cuts into the money I have for food and takes away from my general spending money," Spence said.
Petroleum engineering senior lecturer Tim Taylor said that supply and demand are why gas prices are draining a huge chunk of Americans' change.
"If consumption keeps going up, the price will go up," Taylor said.
While demand has increased dramatically, supply is struggling to keep up. In the past six years, the world production of oil has increased from 72 million to 82 million barrels per day. While this may seem like a significant increase, it is barely enough to supply the demanding economy. U.S. Americans make up 4.5 percent of the world's population, but consume 25 percent of the world's energy. The emerging economies of India and China are also demanding large amounts of gasoline.
"There is a direct correlation between energy consumption and standard of life," Taylor said. "As these countries build their economy, they also increase their demand for oil."
The majority, 68 percent, of the high price of gasoline originates from the rising cost of crude oil.
In March of 2006, oil was setting records at $72 per barrel. This Wednesday, the price of crude oil hit an all-time high of $112 per barrel. When the market closed on Thursday, it had dropped to $110.
The 55 percent rise in oil costs has not been paralleled in gasoline prices. The average gas price in Texas has increased only 20 percent from $2.74 a year ago to $3.28 Thursday. Taylor predicts that because of the discrepancy between the percent increases of oil and gas, pump prices will continue to rise until they reach the same relative increases as oil.
Despite these skyrocketing prices, Americans have not significantly reduced their gasoline consumption.
"The funny thing about it is that we just keep on buying gas," Sims said.
Taylor said the only way to reduce the price of gas is to lower our consumption.
"We have got to stop driving SUVs and start doing things to conserve energy," he said.
Corporate communications and marketing junior Raegan Walker said she was plans on looking into hybrid technology when buying a new car.
"Sixty miles per gallon is a pretty attractive thing right now," she said.
One type of alternative fuel provided in Austin is biodiesel, a type of diesel made from renewable resources such as soybeans and animal fat. This petrol diesel substitute is about 20 cents cheaper and cuts toxic emissions by 80 percent.
Jason Burroughs, managing partner of DieselGreen, an Austin biodiesel producer, said he has seen a significant increase in demand because of high diesel prices. The company grew 400 percent from February to March.
"Austin, being such a green city, has a very strong market for biodiesel," Burroughs said.
While diesel vehicles only comprise 3 percent of the market, Burroughs said he expects to see that number increase in the next few years, because diesel engines are cleaner and more efficient.
"Biodiesel will be around forever because you can make it in your backyard," Burroughs said.
While biodiesel is a possible alternative for diesel engines, petroleum engineering senior lecturer Paul Bommer said the best solution for unleaded vehicle drivers is to drive less. He recently retired his gas-guzzling Ford Expedition and now gets higher gas mileage out of a used Toyota Camry.
"The best way for us to reduce the cost of fuel is to use less of it," Bommer said. "If demand drops, energy prices will follow."
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