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By M. PAUL JACKSON mjackson@leader.net
Wednesday, January 26, 2000 Page: 1A
Rapidly rising diesel fuel prices might force Forty Fort trucker Larry Leeman
to park his rig.
The cost of fuel for Leeman’s 300-gallon vehicle jumped an unexpected 37
cents last week, making it difficult for Leeman, 46, to stay in business, he
said.
The $1.99 a gallon for diesel fuel at a truck stop in Avoca “is the
highest I’ve ever seen it,” said Leeman, a driver for about six years.
“It’s outrageous,” he said. “When you’re making a living driving a
truck, the price (of gas) has to be at least reasonable.”
Reasonable it’s not, say truckers. And Leeman is not the only customer
who’s beginning to complain.
Increased restrictions on the world’s crude oil supply have begun to
strangle oil and gas consumers. The cuts have sent diesel and gasoline prices
soaring, increasing costs to drive a truck or car and heat homes.
And, industry experts believe fuel prices could get worse.
Members of the Organization of Petroleum Exporting Countries – the agency
that controls much of the world’s oil production – have said they would not
raise crude oil outputs as expected.
One OPEC-watcher predicts the world could face a gas shortage by summer,
according to The Wall Street Journal.
The reductions have been felt by consumers as oil companies and gas
stations raise prices to compensate.
“Unless OPEC signals that they’re going to stop this limitation, we’re
just going to see prices rise higher and higher,” said Colleen Healey,
spokeswoman for the American Automobile Association.
According to the association, gas prices are up 31 cents per gallon since
last January. The national average as of Jan. 19 was at $1.28 – the highest
price ever recorded by the AAA.
“The outlook is gloomy,” Healey said. “I would say we’re well into $1.30
at this point.”
Diesel prices are worse.
At the truck stop in Avoca, diesel prices shot up in just days, jumping
from $1.62 to about $1.99, Leeman said. The sudden boost caught many drivers
unaware, forcing them to drive slower simply to save fuel.
Late last week, diesel prices were up about 3 cents, trucking officials
said. By the weekend, however, the price ballooned by about 30 cents a gallon.
“It just seemed like it got out of hand,” said Jim Runk, president of the
Pennsylvania Motor Truck Association.
For drivers, the increased prices could threaten their jobs. Because it
costs more to drive greater distances, truckers such as Leeman say it might be
too expensive to stay in business.
“With truck payments and insurance and everything else, you’re not making
anything,” Leeman said. “The way the fuel is now … it could put me out of
business.”
Tuesday’s sudden snowy weather also sent homeowners to their thermostats to
raise the temperature. The oil shortage has sent their bills rising as well.
At the Wayne Fuel Co. in Wilkes-Barre, the cost of buying fuel from
distributors jumped by 32 cents since Friday – forcing the company to raise
consumer prices as well.
Indeed, heating oil prices on the New York Mercantile Exchange jumped 4
percent Tuesday because of the snowstorm.
“You’ve got to feel bad for the customer,” said owner Virgil Argenta.
Argenta did not say how much the company charged homeowners for oil, but
said the price has doubled during the past few weeks. Many customers are
senior citizens or welfare recipients, he said.
To stay in business, “you have to just pass the price right along to the
consumer,” Argenta said. “It breaks my heart.”
And, at Phillips Fuel Inc., the home heating company has had to boost its
prices as well, employee Dawn Dorris said.
The business had paid about 99 cents per gallon for oil about two weeks
ago, she said. Now, it has to pay about $1.33.
“We tried to hold (the prices) steady as much as we could, but with the
way the price is jumping, we had to increase it,” she said.
So what can consumers do? For homeowners, the higher prices could continue,
but motorists should be able to conserve gas.
“The only thing consumers can do is be savvy,” Healey said.
Drivers should shop around for the best gas prices and try to consolidate
errands and car pool, she said.
“If you have the opportunity (to car pool), it’s a great way to save
money.”
Call Jackson at 829-7134.