Ripples spread as gas costs go up

Utahns who've fueled up in recent weeks already know the effect of increased gas prices on their finances. But paying more at the pump could be just the beginning.

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."

Utah food buyers are already feeling the pinch. Supermarkets are starting to pass along the higher prices they're paying for just about everything they stock, especially milk and fresh produce.

"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.

Factor in the recent 20-cents-a-gallon increase in diesel prices, and the fuel surcharge that the trucking company's customers pay jumps pretty quickly. "It's never that well received," said Mike Bunnell, CR England's senior vice president. "It's not a good thing at all."