HOW FAR CAN IT GO?

By MARK TODD - Staff Writer - mtodd@starbeacon.com
Star Beacon

April 24, 2008 11:41 pm

— Suddenly, $4 for a gallon of gasoline doesn’t seem so far-fetched.
Fuel prices that have marched skyward the past several weeks have hit new heights, while experts warn the worst is yet to come.
On average, Ashtabula motorists paid $3.56.7 for a gallon of gas Tuesday, the highest price ever, said Bevi Powell, Ohio AAA spokeswoman. And yet in a few short weeks these could be the good old days for motorists, based on experts’ predictions.
“Typically, prices do trend upward as companies make the switch to summer blends and demand increases,” Powell said. “Usually, around Memorial Day prices peak and then level off.”
But statistics show trends may not apply to today’s volatile fuel market. Last year at this time, motorists paid nearly $2.77 a gallon for gas, almost 80 cents less than Tuesday’s price, Powell said.
April has been especially brutal, with prices vaulting 30 cents a gallon since the month began, she said.
The expense is delivering a real wallop to the wallet to transportation-based businesses and local government. Budgets can be jiggled only so much compensate for the added cost, officials said.
Ashtabula County has essentially idled its non-safety vehicles to conserve fuel, said County Administrator Janet Discher. Vehicles that once went home with some employees, such as county inspectors, are now parked in Jefferson overnight, she said. Some inspection time is lost as a result, but the county also saves money on fuel, Discher said.
“We’re monitoring the gasoline situation,” she said. “We’re trying to do everything we can.”
Some businesses don’t have the luxury of parking some of their fleet for a few hours. City Taxicab and Transfer Co. in Ashtabula maintains 35 vehicles that gobble lots of gas to deliver passengers. Today’s fuel prices are potentially disastrous, said owner Tony Angelo.
“It’s devastating us,” he said. “It really is.”
City Taxicab pays between $30,000 and $35.,000 each month for fuel, Angelo said. The business had to add a surcharge to its fees to help ease the blow, he said. Hopefully, the surcharge is temporary, Angelo said.
“I’ll remove it as soon as I can,” he said.
In the meantime, drivers have been instructed to shop for the cheapest gas they can find, Angelo said. “We’re in a serious situation,” he said.
Many drivers are apparently convinced inflated prices are here to stay, and are looking for wheels that don’t gulp the gas. High-mileage vehicles are now the rage, said Greg Sweet, who owns dealerships in Conneaut and North Kingsville.
“I’m noticing a real trend to get out of inefficient cars and into (fuel-efficient) vehicles,” he said. “Anything that gets 30 miles or more to the gallon. People are more miles-per-gallon conscious than ever before.”
Fuel economy doesn’t necessarily equate to cheap purchase price, however, Sweet said. Cost of fuel-efficient vehicles are rising to reflect their growing popularity, he said.
Even the cost of a pizza sometimes requires more dough as long as fuel remains expensive. JD’s Pizza, with operations in Conneaut and Ashtabula, added a $2 charge for delivery that helps reimburse the driver for the gas that’s burned, said owner Mike Morgan.
“We’re doing more deliveries now than ever,” e said. “Eighty percent of our business is delivered.”
Customers don’t object to the fee, Morgan said. “It costs more than $2 to get in your car and pick up your pizza, he said.

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