How high is too high?

April 29, 2008 12:45 pm

— The continued rise of fuel prices has made filling up the tank in a car as expensive as ever. The added fuel expense also has put a pinch on businesses that rely heavily on delivery, which has increased prices on area goods, delivering consumers a double whammy.
“The different trucking firms have added surcharges to the price of delivery,” said Don Bushue, manager of Martin’s IGA Plus in Effingham. “In business, you have to absorb some of this and pass some of it on to the customer.”
While the cost on essential goods like fuel and food are on the rise, there seems to have been little change in consumption.
“This is something that you learn to deal with and people make it manageable,” said Bushue. “We haven’t had a change in receiving goods with the current prices.”
“No doubt about it, fuel prices are at an all-time high,” said Paul Koester, petroleum department manager at Effingham Equity. “Every week the Department of Energy calculates fuel prices in different areas of the country for the week. Based on the average, the trucking industry adds a surcharge to the amount it costs to receive goods.”
Equity, which deals with a variety of goods like fuel, anhydrous and fertilizer is seeing little change in operations.
“We haven’t changed much. The farmer has to get the crop in the ground,” said Koester. “We are looking at our operations to try and save some trips across the field.
“The thing that will determine the amount of goods used with services that rely on fuel is the market,” said Koester. “The business will have to pass the cost to the customer, and it will be up to the consumer to say ‘I will cut back how much I will buy.’”
With businesses dealing with the rise in prices and little relief coming to the average consumer, reaction to the cost of fuel has varied. While some drivers have resorted to car pooling, driving more fuel-efficient vehicles or making short trips via bicycle, there is no noticeable change in fuel sales.
IGA’s Midtown Fuels, the fuel branch of the grocery store, has seen a consistent usage.
“At this point, the fuel sales have been equal to a year ago,” said Bushue. “We haven’t seen any change in fuel usage, its something people have to buy.”
Tony Huffman can be reached at 217-347-7151 ext. 135 or tony.huffman@effinghamdailynews.com.

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The continued rise of fuel prices has made filling up the tank in a car as expensive as ever. The added fuel expense also has put a pinch on businesses that rely heavily on delivery, which has increased prices on area goods, delivering consumers a double whammy. Effingham Daily News