By STEPHEN DICK, Herald Bulletin
If you’re driving, you’re paying more at the pump. If you’re driving for a living, you’re hurting.
On Monday, gas prices throughout the area leaped up to $2.49 a gallon. Also Monday, crude oil prices closed at $64 a barrel as speculators feared potential terrorist threats in Saudi Arabia and concern over refinery outages in the United States.
Charlie Cheshier, owner of Cheshier Leasing LLC, Anderson, not only sees the price rise affecting his business, but everyone else as well.
“The bad part is, it affects everybody,” he said. “If you buy groceries, someone will pass on the fuel costs of shipping those groceries.”
His business is partially protected by a fuel surcharge that allows him to pass off the cost of diesel to those he ships. Sometimes they don’t want to pay, he noted, and he makes it a point to avoid them.
The surcharge is currently 19 percent, what he can charge above shipping costs, compared to 7 percent a year ago.
“The (surcharge) helps, but it doesn’t cure it,” Cheshier said.
In March 2004, he said, diesel was at a $1.61 national average, compared to $2.34 today.
“Dispatch says things are dropping off this week,” the owner said. He also sees a drop in the profit margin, saying that he has to maintain his fleet of trucks and drivers.
“If you can’t make money and pay your guys, there’s no sense doing it,” he said.
Cheshier said he fully expects to see gas prices rise to $3 a gallon. “I don’t think they’re done,” he said ruefully.
Local cab companies are feeling the pinch but will not raise rates for their customers.
“It’s pretty much business as usual,” said Randy Willis, owner of Anderson Taxi. “With high gas prices, we’re holding prices for customers.”
Willis said he doesn’t foresee any changes until gas hits $2.80 a gallon. “I’d be forced to take a look at that,” he said.
“When our drivers are paying $40 a day (for gas), they’re not making anything,” said Anne Derrickson, dispatcher at P&P Taxi.
Drivers are responsible to fill the taxis after shifts, out of the money they’ve earned on runs. With rising gas prices, “that’s pretty much all their booking,” said Derrickson.
In-town driving drinks more gas, she noted, than if drivers get out on the highway.
She added that the company wouldn’t be raising rates.
Ridership has fallen, too. “People don’t want to ride cabs,” Derrickson said. “When Nifty Lift went out, everyone thought we should give the same rate, but there’s no way we can.”
Pizza delivery drivers are also feeling the squeeze.
“(Gas prices) have affected us,” said Erica Trahan, a daytime driver at Pizza Hut. “A lot of our drivers are quitting. They pay us 85 cents per delivery, and it’s not working.”
She said Pizza Hut is charging $1 delivery charge and chalking it up to operating costs, but the drivers don’t see any of it.
“It’s hard to make a living as a driver right now,” she said. “All our tips go into the gas tank.”
Nate Clay, store manager of Domino’s, said it’s business as usual — almost.
“It’s affecting my drivers,” he said. “They’re not making as much. My prices haven’t changed.”
Drivers are paid a set mileage rate, which, Clay said, just doesn’t go as far.
Ironically, the drivers who are aren’t making as much are delivering more pizza than normal for Domino’s. Because of the rise in gas prices, Clay noted, customers are avoiding carry outs in favor of having their pizza delivered.
Despite the official reasons for the increase in pump prices, some analysts said the run-up in prices in recent days has been driven more by speculation and political concerns than by actual changes in supply and demand.
The Associated Press contributed to this story.
@ 2005 The Herald Bulletin.