Too Poor to speed

Wednesday, May 14, 2008

Click here to enlarge this photo Staff photo by GARY SMITH Waste Management employee James Hamilton fastens a safety hold-down strap on a roll-off trash container at a Waldorf business. WM has passed on fuel increases for its 26,000 trucks nationwide, which get four miles to the gallon, to customers to maintain its profits. E-Mail This Article | Print This Story

The Waldorf nursing student said skyrocketing gas prices have taken a toll on her and her husband’s budget, whether they’re at the pump or at the grocery store.

‘‘I bought my car in October 2005. When I first got it, it cost $20 to fill it up. The other day it cost $42,” she said.

Shlagel said her husband, who drives a Ford F-150 truck, hasn’t filled his tank all the way up in a while because once the dial hits $80 or $90, he gets so mad he stops fueling. While grocery shopping recently, Shlagel also remarked on high grocery prices, especially for fresh vegetables. The cost of gas means that it’s costing more to transport food to grocery stores, contributing to rising prices in supermarkets.

‘‘What used to cost me $30 now costs me about $50. And that’s just for the basics ... for two people,” she said. By clipping coupons and looking for sales, Shlagel says she saves about $10 a trip. ‘‘I definitely think twice about buying something I want but don’t really need.”

The economy’s downturn, topped off by rising fuel prices, is visible daily to most people. Not only are consumers facing the brunt of steadily climbing increases, but so are businesses, which many times are forced to pass increases down to customers. Those that don’t find competing is getting tough, but are relying on the loyalty of local customers to get them through.

Gas prices mean Waste Management, which has 26,000 trash trucks nationwide that get about four miles to the gallon, has felt a pinch. And that means its customers have, too.

Since the price of fuel has risen about 33 percent over the last few months, 5 percent of which has been just in the last couple of weeks — a fuel charge of about the same rate has been added to customer invoices, said Lisa Kardell, Maryland spokeswoman for Waste Management. WM has 36 routes in Southern Maryland.

‘‘The increased fuel costs have a direct effect on the cost to dispose the local residential garbage due to the increased cost to fuel WM trucks. We do monitor everything with the U.S. Department of Energy. That’s how we determine our increases fuel surcharges that we’ve imposed on our bills,” Kardell said.

Kardell said if the price of fuel goes down, so will the fuel surcharges.

Local restaurants are also feeling fuel frustrations.

‘‘The ways that we’re feeling the pinch is that wholesalers have raised the prices of the items they send us. Their reason for raising the prices is gas and on top of that they’re putting a fuel surcharge on top of all the invoices,” said Rob Plant, owner of Blue Wind Gourmet in California.

The surcharges are anywhere from $1 to $12.

‘‘We have not raised our food prices so it’s affecting our profitability.

[Prices] have risen between 2 [percent] and 10 percent depending on the item and distributor. Beer is highest. There’s been an increase in all farm products which in a restaurant, encompasses pretty much everything. Everything including power and water has risen as a result of this, so there’s no way to cut expenses. Of course, employees are paying more money to get to work. We are basically eating the cost of all these things and we hope the loyalty to our customers pays off in the end,” Plant said.

Even small home-based businesses like day cares are depending on stabilized grocery prices to keep their food supply cost-efficient and nutritious.

Russell Shlagel, owner of Shlagel Farms in Waldorf, said input costs for him are up across the board and are directly related to fuel, including diesel fuel for tractors and delivery vehicles, plastic mulch that’s made with petroleum products, doubled fertilizer costs over last year, and increased nitrogen prices.

‘‘Even though our economy is off, the world economy is good,” said Shlagel, who grows fruits and vegetables on 400 acres.

‘‘We’re selling to the chains, Giant Food and Whole Foods. [Our prices] went up nowhere near to reflect the percentages of increases that we’re faced with. In all actuality, when this year’s over with, we’re really not going to make any more money. We’re just handling more dollars. The root to all the problems is fuel,” he said. There’s about a 10 to 15 percent between the price increases he’s seen in expenses and the price increase for his goods.

‘‘The American people were failed by our politicians. That’s it in a nutshell. They knew they had energy problems as far back as the ’70s. The fundamentals aren’t there to suggest the prices that we’re paying. There’s too much speculating in the commodities markets that’s driving the price of crude oil up so we’re paying at the pumps. Small businesses, they’re getting beat up. But everyone’s getting beat up. Maybe those people getting foreclosed on, if they weren’t paying $3.60 a gallon in gas every day, they could make that house payment. The root of all evil is fuel. It’s hurting everybody,” he said.

Food and beverage prices in the Washington, D.C., metropolitan area were up 4.2 percent in March over last year, and up .5 percent since January, according to the U.S. Bureau of Labor Statistics. Overall transportation costs were up 8.3 percent since last year and 2 percent since January. Energy costs rose 3.8 percent from January to March and are up 27.7 percent since March 2007.

Chris Richardson, owner of the Bike Doctor in Waldorf, said even the price of bicycles is going up because of increases in the price of raw materials and the fuel it takes to transport the bicycles from around the globe.

‘‘Across the board by fall, you’ll see a 20 percent increase on bikes from last year to this coming year. They trickle down. It’s going to be challenging to try to absorb that ourselves. We’ll try not to pass it all down to the consumer. We’ll probably take a hit to our margin. It’s definitely a hard time,” Richardson said. ‘‘We don’t want to shock the customer.”

He said more people are purchasing bicycles to get from place to place also.

‘‘People are trying to leave their cars,” he said.

But are people really changing their driving habits?

Shlagel said she would take Metro to get into Washington, D.C. for work twice a week, but since fare prices went up and she still must pay to park, she might as well drive.

But locally, fuel costs have made Shlagel start combining trips more to waste less gas.

‘‘You used to not think about it,” she said.

Andrea Fowler of Brandywine said she’s doing the same.

‘‘I couldn’t believe it. It seemed gas had jumped overnight. I think I try to do everything at one time. You really find you look around for what’s cheap. Even three cents difference, you figure ‘hey, as long as I’m already out here,’ ” she said.

Both Shlagel and Fowler said they can only cut down so much because they must drive their cars to get anywhere.

Enrollment at the Southern Maryland Telework Centers in Prince Frederick and Waldorf is up since 2007, when there were 411 people taking advantage of them.

Now there are 456, but a General Services Administration spokeswoman who handles the statistics says she’s not sure whether that’s because of fuel prices. Many people enjoy teleworking for the time it saves on the road and improved productivity.

But ridership on commuter buses from Southern Maryland to Washington, D.C., spiked from January through April, said Cheron Victoria Wicker, a Maryland Transportation Administration spokeswoman, and it’s definitely because of gas prices. Fares range from $3.50 to $5.75 each way from Charles, St. Mary’s and Calvert counties. This year to date the buses have seen a weekly average of 5,149 riders, compared to 4,479 last year. From January to April, the MTA estimates ridership to be at 964,382. There were 992,873 total riders in 2007 in those months.

Businesses are finding that parking vehicles is the only fix.

‘‘We’re leaving them parked more than they’re working at this point,” said Gail Moreland, office manager for Dale Moreland and Son Excavating in Nanjemoy. ‘‘We’re trying to sell a couple of them because by the time we pay for the fuel and the driver, you’re only making $44 a day. If you’re making a payment on that truck, it’s not worth running it. The dump trucks are going through 82 to 100 gallons for eight hours. It’s $4.30 for diesel. It was $2.87 at this time last year. It goes up every day.”

And her company isn’t the only one feeling the pinch, she says. Some larger companies can take losses by bidding low for jobs, even with fuel increases. But small ones can’t.

‘‘If it’s a single [independent] truck [company] they can’t provide for their family. It’s so sad because there’s so many of them. I took a drive and saw so many trucks and tractor trailers sitting. We did not see this coming at all,” Moreland, who said she’s written to state representatives on the issue.

Moreland said she and other businesses she’s spoken with hope something is done to stabilize fuel prices soon.

‘‘They’re praying,” she said.

Tips to save gas

Observe the speed limit

While each vehicle reaches its optimal fuel economy at a different speed (or range of speeds), gas mileage usually decreases rapidly at speeds above 60 mph.

As a rule of thumb, you can assume that each 5 mph you drive over 60 mph is like paying an additional 20 cents per gallon for gas.

Remove excess weight

Avoid keeping unnecessary items in your vehicle, especially heavy ones. An extra 100 pounds in your vehicle could reduce your miles per gallon by up to 2 percent and save 4 to 7 cents per gallon. The reduction is based on the percentage of extra weight relative to the vehicle’s weight and affects smaller vehicles more than larger ones. A loaded roof rack can decrease your fuel economy by 5 percent. Reduce aerodynamic drag and improve your fuel economy by placing items inside the trunk whenever possible.

Avoid excessive idling

Idling gets 0 miles per gallon. Cars with larger engines typically waste more gas at idle than do cars with smaller engines.

Use cruise control

Using cruise control on the highway helps you maintain a constant speed and, in most cases, will save gas.

Maintain car properly

Fixing a car that is noticeably out of tune or has failed an emissions test can improve its gas mileage by an average of 4 percent, though results vary based on the kind of repair and how well it is done.

Fixing a serious maintenance problem, such as a faulty oxygen sensor, can improve your mileage by as much as 40 percent.

Replacing a clogged air filter can improve your car’s gas mileage by as much as 10 percent and save as much as 35 cents a gallon. Your car’s air filter keeps impurities from damaging the inside of your engine. Not only will replacing a dirty air filter save gas, it will protect your engine.

Keep tires properly inflated

Gas mileage improves around 3.3 percent (about $.11 a gallon) by keeping your tires inflated to the proper pressure. Underinflated tires can lower gas mileage by 0.4 percent for every 1 pounds per square inch drop in pressure of all four tires. Properly inflated tires are safer and last longer.

Use the correct motor oil

You can improve your gas mileage by 1 to 2 percent by using the manufacturer’s recommended grade of motor oil. The savings are equivalent to 4 to 7 cents a gallon. For example, using 10W-30 motor oil in an engine designed to use 5W-30 can lower your gas mileage. Look for motor oil that says ‘‘Energy Conserving” on the API performance symbol to be sure it contains friction-reducing additives.

Commute intelligently

Try to stagger work hours to avoid peak rush hours, you’ll spend less time sitting in traffic and consume less fuel.

Consider telecommuting (working from home) if your employer permits it.

If possible, take advantage of carpools and ride-share programs. You can cut your weekly fuel costs in half and save wear on your car if you take turns driving with other commuters. Many urban areas allow vehicles with multiple passengers to use special High Occupancy Vehicle (HOV) lanes.

Tighten up that gas cap.

Gas will evaporate from the car’s gas tank if it has an escape. Loose, missing or damaged gas caps cause 147 million gallons of gas to evaporate each year.

Eliminate jackrabbit starts.

Accelerate slowly when starting from dead stop. Don’t push pedal down more than 1⁄4 of the total foot travel. Drive steadily. Slowing down or speeding up wastes fuel.

Buy gasoline during coolest time of day.

Buying fuel in the early morning or late evening is best. During these times gasoline is densest. Keep in mind – gas pumps measure volumes of gasoline, not densities of fuel concentration.

Choose type and brand of gasoline carefully.

Certain brands provide you with greater economy because of better quality. Use the brands which ‘‘seem” most beneficial.

Avoid filling gas tank to top. Overfilling results in sloshing over and out of tank. Never fill gas tank past the first ‘‘click” of fuel nozzle.

Keep windows closed when traveling at highway speeds.

Open windows cause air drag, reducing your mileage by 10 percent.

Think ahead when approaching hills.

If accelerating, do it before you reach the hill, not while you’re on it.

SOURCE: Environmental Protection Agency, Fueleconomy.gov and healthrecipes.com

Up, up, up and away

Because of gas, most everything costs more, and that hurts local commuters, consumers and small businesses.

Ways to cut food costs

Plan your meals ahead of time. Look at what you have in the pantry and freezer and build a menu for the whole week around what’s on hand. Shop for only those ingredients you need to round out a healthy meal.

Keep a grocery list. Whether a magnetic shopping list on the ‘fridge or a list on the counter, encourage family members to add to it when they use the last of something. Remind everyone that ‘‘treats” might need to be bought less often as you concentrate using your money on buying milk, vegetables, fruit, and meat.

When the grocery store ads come out, sit down with a list and see who is offering what on sale. If you have a choice of stores, all nearby, you might find different sale items from different stores. If you are not close to several stores, decide which store has the overall lowest prices for the things and save money on gas.

Use coupons when buying brand-name products, but consider trying some of the generic or store brands instead. These items are often cheaper but of the same quality.

When you make meals from things bought on sale, consider doubling the recipe and freezing half of it. When running late, grab something out of the freezer is cheaper than going to a fast-food place.

Make at least one meal each week without meat, which is expensive.

SOURCE: University of Maryland Cooperative Extension