From Deseret News archives:
Ripples spread as gas costs go up
The skyrocketing price of gasoline is already affecting everything from delivery fees to state fuel budgets. But in many cases, the additional cost of doing business for both the private and public sector has yet to be passed on to consumers or taxpayers.
"This could get ugly," said Steve Saltzgiver, director of fleet operations for the state.
The 4,500 vehicles in the government's fleet rack up 95 million miles a year. Thanks to a negotiated discount on gas and being exempt from paying taxes, the state's fuel costs were supposed to be $2.7 million this year.
But now Saltzgiver estimates that his fuel costs will reach $3.2 million by the time the budget year ends June 30. He'll have to dip into reserves to cover the $500,000 shortfall and, next year, raise the fees charged to use the fleet.
"We'll pass it back to someone in the future, and they'll pay it," he said. So where will the state agencies such as the Utah Highway Patrol and the local communities that participate in the fleet find the money to pay the bigger bill?
"The taxpayers," Saltzgiver said. "Exactly."
"The increases have been pretty incredible," said Steve Rich, Associated Food Stores vice president. "Initially we tried not to pass those increases on, to bear them ourselves and try to take them out of any profits we might have had. But they were getting to be so much."
Rich said customers should know that the higher prices for products sold by the chain of 600 independent stores in eight states, including Utah, still don't reflect all of the increase. Since grocery stores typically make only about a 2 percent profit, they're hurting, too.
"We feel it like they feel it," Rich said of the effects of higher gas prices that he doesn't believe will be dropping anytime soon. "We're doing everything we can to cut any expenses that we have."
So is one of the country's largest trucking firms, CR England. The Salt Lake-based firm has some 2,650 trucks that get only about six miles to the gallon as they travel in the United States, Mexico and Canada.
Comments
- SUU museum to honor local artists 6:38 p.m.
- Sub. teacher charged with sex abuse 6:33 p.m.
- Doctor calls Mitchell 'naive,' 'inept' 6:16 p.m.
- Photos: Warming soles 6:10 p.m.
- Eagles, Reid agree to extension 5:52 p.m.
- Ashanti's mom gets lewd messages 5:49 p.m.
- Corbin Bleu to join 'In the Heights' 5:48 p.m.
- Hollywood breaks revenue record 5:47 p.m.
- 'Biggest Loser' sheds 239 pounds 5:46 p.m.
- Strong heading to Louisville 5:42 p.m.
- Hot Rod behind mic for Lakers
- Cougars use depth to beat ASU
- Max Hall wants to look ahead
- Non-BCS schools not given fair shot
- Panel passes BCS playoff bill
- Snow brings big chill
- Doctor calls Mitchell 'naive,' 'inept'
- Palin signs books, chats with fans
- Small plane crashes near Lehi
- Jazz go up against 'the best'
- Y. profs: Beck not all-knowing
291 - Letters: Global warming a lie
228 - TCU to play Boise in Fiesta Bowl
206 - BYU football: Bronco weighs in on Hall
178 - Cougars going back to Vegas
150 - Utah/BYU rivalry can be more civil
145 - Andersen apologizes for Jordan hoax
136 - George lost in rivalry hatefest
121 - Max Hall wants to look ahead
113 - Ed Smart 'appalled' at testimony
100
Love him or hate him, Utah Sen. Orrin Hatch knows how to get attention.
My wife Lisa and I would prefer never to argue. But that's not going to...
For the latest news in the health care debate and how it affects you...
Sweet, good luck Quinton!
Absolutely congress should be dealing with this. In these depressing times,...
I couldn't be happier. The BCS dude's quote About the BCS can make the...
1) Did the Flash win? 2) Did Bryon Russell beat the MJ imposter?
So between Lehi Main and the where the freeway is five lanes in South Salt...
Max is my spokesman....! 'nuff said.
The last thing we need is the government rearing it's ugly head in matters it...
What makes you an authority on deciding what some else knows or who is an...
Max Hall will be selling cell phones in a mall Kiosk in the near future
The guy who takes over a half time is much better than Locke. Locke just...




You can be the first to comment on this story.