Gas Prices
Though most drivers find themselves shelling out more and more money at the pump, it is not only the general public that is being greatly impacted. Many industries are struggling to find solutions to the ever-increasing price of fuel. The airline industry, trucking companies, and even law enforcement are striving to discover ways to save on fuel costs. Many times those savings suggest a reduction of services that the American people have come to expect as the standard. Not only that, when the cost of fuel goes up, so do prices for those services.
Time Magazine claims that when the cost of a barrel of oil grows a dollar, the airline industry instantly sees a $365 million swell in its own fuel prices. This spike in price can lead to both the consumer and airline employees feeling the aftershock. Spirit Airlines, based out of Florida, has implemented a new policy that charges a fee for every piece of checked baggage. Also, they’ve decided to charge for beverages during flights, what used to be complimentary on every flight. Midwest Air Group has instead chosen to cut back on its staff. According to Midwest’s Chief Executive, fuel costs amount to almost 50% of the airlines everyday expenditures. Unfortunately, this means that 109 employees, including 35 pilots, will be forced to seek employment elsewhere. Furthermore, airlines are being forced to lessen their number of flights and raise the overall price of tickets. United Airlines is discontinuing less profitable flights, those that have the fewest number of passengers. The CEO of Delta Airlines has announced that their ticket prices will go up by 20% to cover the excess costs taken on by fuel prices.
While many do not think about what it takes to get goods from point A to point B, the trucking companies certainly are thinking long and hard about that trip. R.L Smith Truck Brokers Inc. has put into action a fuel service charge for every delivery. Trucking industry experts have estimated that diesel fuel costs have risen by 38% since 2007. The goods that those trucks are delivering are undoubtedly going to jump in price just to deal with extra fuel fees. Many truckers that are owner-operators of their trucks are going bankrupt trying to stay afloat. Unfortunately, this bankruptcy continues the vicious cycle. When the industry loses those drivers, there becomes a driver shortage. So, not only does the trucking industry have to find ways to deal with diesel costs, they also have to figure out ways to still get products to vendors with fewer drivers.
Most citizens are not considering the effect that rising fuel costs may have on law enforcement. Unfortunately, many law enforcement agencies did not budget for such high prices. In North County, California, the sheriff’s department only budgeted for $2.5 million in fuel costs in 2005; however, the department ended up spending at least $3.25 million. Nationwide, departments have to dip into more tax funds than ever expected to pay for fuel. By taking money for fuel from taxpayer funds, other government services are feeling the blow. In California, the Los Baños Fire Chief has deducted money from the department’s maintenance fund to pay for gas. Fortunately, most departments are not being forced to lay off any employees. However, experts suggest that in years to come, rookie police officers introductory salaries may be lessened to support some of the gas expense.
Even as most are feeling the pinch at the pump, some are discovering ways to deal with and even avoid the problem entirely. In Hernando County, Florida, the local government is developing ways to avoid simply raising taxes to cover fuel costs. They have created a proposal to switch the government vehicles to electric power. Also, many vehicles are already doing double-duty. Dump trucks are being turned into flatbeds by merely exchanged the beds. They are considering the option of hydrogen-powered cars as well. The American public is finding innovative ways to overcome gas prices too. Many have already switched to either compact economy cars or hybrid models. Commuters in larger cities are replacing their gas-guzzlers with bicycles, carpooling, and public transportation. Others that live in close proximity to their workplace are simply walking. Some have even started fueling their diesel vehicles with a vegetable oil mixture. While some are making dramatic changes, most are just driving slower and reducing trips. No matter what, changes are being made both in the community and in the corporate world. Just like any other crisis, natural or man-made, almost every citizen who relies on the petroleum industry for goods and services will find ways to adapt by conserving resources and innovating new ways to overcome this hardship.
