Rising Gas Prices Stifling Local Economy
By Mark C. Robinson
Special to The Sentinel
In order to cope with rising gas prices, local residents and businesses alike throughout the community are making many adjustments to their everyday life.
The American Automotive Association conducted a recent survey of D.C. area motorists: 35 percent said they were driving less often; 12 percent said they were carpooling more often as well as resorting to mass transit despite recent price hikes by Metro transit services; seven percent say they are now driving a more fuel-efficient vehicle.
"Americans are spending almost four percent of their paycheck now on fuel costs, which is almost double of what they were paying five years ago," said John Townsend, Manager of Public and Government Affairs for AAA Mid-Atlantic, reporting that $1.2 billion a day will be spent on regular gasoline this year, which is double of what was spent in 2002.
However, while the average price of regular gasoline is currently going for a record $3.28 per gallon in the D.C. area, the price of diesel has soared even higher to $4.12 per gallon. "The hidden story in all this is the cost of diesel," said Townsend, who also reported that the trucking industry, which mainly uses diesel, will spend $135 billion for fuel, a $22 billion increase from last year.
While residents adopt cost-cutting measures, businesses must deal with the added expense by passing it along to the consumer. Shipping companies like UPS and FedEx have begun putting fuel surcharges in place for their customers based on the On-Highway Diesel Fuel Prices Index, available from the Department of Energy, while more and more retail businesses are increasing prices. Even the cost of airline tickets will increase because of the rising cost of jet fuel. Townsend contends that these rising prices will have an effect on everything from eggs to clothing in the state, affecting budgets, and impacting services such as school systems, and police and fire departments.
"Fuel conservation is a constant priority," said Esther Bowring from the Office of Public Information for Montgomery County. The county has adopted a number of independent initiatives to help minimize fuel use and reduce the county's carbon footprint. While the majority of Ride-On buses use diesel fuel, a third of the fleet uses Compressed Natural Gas (CNG), and there is even a small number of diesel-electric hybrid vehicles.
Montgomery County's Division of Fleet Management Services is also attempting to get the word out to the public about their alternative fueling station for flexible fueling vehicles located at 16640 Crabbs Branch Way in Rockville. The facility sells ethanol, or E-85, at $3.19 per gallon while CNG is selling for $2.29. "There are many vehicles that can take the E-85," said Bowring, who added that a number of trucks and taxicabs can also utilize CNG.
Time will tell if any of these adjustments prove fruitful in the long run. For now, America must ride out the tide of inflation at the pump. "Anyone who moves by rail, by road or by air is being impacted by high fuel costs," said Townsend. "Unless you're riding a bicycle, you're in bad shape these days."
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