Businesses Suffering Gas Pains

Aug. 17–Taxi and truck drivers and tulip deliverers are among the Tallahassee workers coping with record gasoline prices climbing as much as 7 cents a day, business operators said Tuesday.

“If it keeps going up, I won’t be able to stay in business,” said Daniel Jones, who has driven a Yellow Cab for the past four years. “It’s costing me $40 a day now to fill up.”

Jones said the recent increase in cab fares by city commissioners doesn’t begin to cover the cost of gasoline, which hit a record average high locally – again – Tuesday of $2.533 for a gallon of unleaded regular.

Prices as high as $2.66 per gallon for regular unleaded at Circle K and $2.64 a gallon at Gate gas stations were reported Tuesday in Tallahassee.

Just a day earlier, on Monday, the average price for unleaded regular in Tallahassee, according to the AAA Auto Club South, was $2.46 a gallon. That 7-cent jump mirrors what Jones said he saw when he filled his cab Tuesday.

Fuel costs began climbing in early 2004 and have jumped more than 60 percent. Airlines have added per-ticket charges, delivery services such as FedEx are tacking on air and ground fuel surcharges and manufacturers are increasing prices for products made with or from petroleum.

But smaller businesses and independent businessmen may not have the luxury or the ability to raise prices or add fuel charges.

Jones said a year ago, he was paying $25 to fill up his Ford Crown Victoria, which gets about 15 miles to the gallon.

No relief in sight

The average price in Florida for a gallon of unleaded Tuesday was $2.533, up 7 cents from Monday. Nationally, the average price Tuesday was $2.524 per gallon, the ninth day in a row a new national record was set for the price of unleaded regular.

The price spikes are being driven by record crude-oil prices, industry analysts say, and are not likely to abate until the cost of crude-oil futures drops from its current price, just above $66 a barrel.

The overheated gasoline prices haven’t wilted flowers yet, but Jesica Parker, owner of Blossoms Flower Shop on North Monroe, said at some point the fuel surcharge she uses to cover rising gas costs will have to be raised.

In-town delivery charges are $6.75, and Parker does not want to increase that price.

Lisa Metcalf, manager at Blossoms, said the company makes from 175 to 200 deliveries a week.

“This latest surge has almost pushed us over the edge,” she said.

Metcalf said she and Parker were discussing how to deal with gasoline prices Monday because the business has been hit with increased charges from manufactures, small delivery services, large truck lines and air cargo deliveries.

“We get about 45 deliveries a week,” she said, “and all of them have hiked their fuel charges.”

William Francis, owner of B-Franz Charters Co., a charter bus service in Tallahassee, said rising fuel prices have put his company “in a bad predicament.”

“A couple of months ago,” he said, “when I gave a quote for a trip, the prices was $2.10 a gallon. By the time it’s time for us to do the trip, gas is $2.49 a gallon.”

Francis said he’s reluctant to add fuel surcharges to existing charters because customers complain.

Leaving the driving to somebody else also is taking its toll in the limousine business, said Michael Green, operations manager at Mike’s Limousine in Tallahassee.

“We haven’t had to raise our prices,” Green said, “but we have had to make some fuel adjustments in the past year.”

He said if use of the limo is local and requires little driving, no fuel charge is added. But if longer trips and more mileage are involved, “we will make a fuel surcharge to offset it.”

Airlines feeling the pinch

Airlines, struggling with jet-fuel prices that have risen right along with gasoline prices, last week added surcharges.

Delta Air Lines, which added $20 to its round-trip tickets last week, is a classic example of how fuel prices can affect a company’s bottom line.

Delta reported a loss of $388 million in the quarter ending June 30. Company officials said more than $1 billion was spent on jet fuel during that period.

Meanwhile, Green of Mike’s Limousine summed up the dilemma higher fuel prices bring:

“When you are in the transportation business, it’s something you have to consider,” he said. “They say fuel prices go up and down, but nowadays, they just go up.”

FINDING CHEAPER GAS

Try www.gasbuddy.com or www.gaspricewatch.com to find the cheapest gas prices near you. Spotters jot down prices as they drive and post them to the site; anyone can type in a ZIP code to see the lowest prices in a particular area.

For more about gas prices, check these Web sites: www.fuelgagereport.com www.eia.doe.gov/ www.fueleconomy.gov/

By Rocky Scott and Juana Jordan

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