No relief for some gas users

By Jolene Guzman, Alexander Rich and Jessica Musicar, Staff Writers
Saturday, December 13, 2008 | 1 comment(s)

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Gas prices might be on a roller coaster, but the downward slide isn’t necessarily translating to lower prices.

Yellow Cab Taxi Company in Coos Bay increased fares after gas prices rose well above $3 and stayed there. While fuel prices have dropped, other costs have not taken the same downward path, said Dawn Lindsey, the business manager for the company’s drivers.

Tire prices have increased $30 recently and an oil change that used to cost around $20 now is in the $30s.

“I have yet to see any of those costs go down,” she said.

All of those factors go into fare figuring. The company has increased its price by $2 in the last 20 years, Lindsey said. Customers now pay $7 for an in-town ride and Yellow Cab’s phone is not ringing as much these days.

“I’ve seen a big fluctuation in rides,” Lindsey said. “People are budgeting a little more.”

The company is considering offering a senior discount as a way to help people on fixed incomes. For the holiday season, Yellow Cab is offering a $1 discount for riders donating a can of food to the company’s food drive.

“With Christmas coming, everybody needs a break,” Lindsey said.

Transit budget benefits

The drop in gas prices also has helped Bruce Bennett’s budget at Coos County Area Transit. Its budget was set with prices at the pump at $3.63 a gallon.

CCAT set ridership records this summer thanks in part to the high gas prices. Now that gas costs less, the numbers are more in line with previous years, though the transit manager thinks some new riders may continue to use the service.

Bennett noted that gas prices started significantly falling in September, but bus use on the CCAT loop service continued to grow into October, with a total of 2,372 riders. That’s in comparison to last year’s total of 1,553. And November’s ridership still set a record, beating the previous high, set last year, though only by about 100.

He is waiting to see what happens in December, but Bennett said he thinks there might be more riders from now on.

“They made it work for them,” he said.

Diesel prices still high

Not everyone has benefited from dropping fuel prices. While diesel costs less than it did over the summer, it is still nearly $3 a gallon, almost twice the cost of gas.

Unless it comes down, food prices will probably stay about the same, said Kevin Murray, produce, grocery and advertising supervisor at McKay’s Markets.

The local chain’s suppliers use diesel-powered trucks and farmers power their equipment with the more expensive fuel, too. It won’t be until diesel drops and those groups see some relief that shoppers might see food prices go down, Murray said.

At the McKay’s Freshmart in Coos Bay, Store Manager Steve Hasel said business at the grocery is much the same as it was last December. Customers, he added, typically wait until late in the month to do big shopping trips.

“Once they start spending their money, they really spend their money and they buy everything,” Hasel said. “The gas prices are down, but the food prices are the same. People are still really budgeting their money because they don’t trust that gas prices are going to stay where they are at.”

They also wait to shop until Wednesday, the chain’s advertising price break day, he said.

Checker Jenny Kunders, who has worked at the store for almost two years, said customers have told her that lower gas prices mean more groceries, especially during the holidays.

“They’re glad gas prices have gone down, because now they can afford food.”
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Mr E wrote on Dec 13, 2008 7:48 PM:

One of the "good" ideas brought to the world by WalMart is the idea of taking a bit less profit per-transaction, but subsequently creating more transactions via lower prices. It's too bad Yellow Cab doesn't think of something like that...


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