Higher gas prices hit Athens

by Amanda Iacone
Staff Writer

While Washington scrambles to develop a national energy plan, gas prices keep rising across the country and in Athens County.

President Bush announced his energy plan for industry regulation yesterday in St. Paul, Minn. Congress hopes to pass legislation on it by the end of summer.

But rural areas like Athens might feel the effects of higher fuel prices before metropolitan areas.

Gas prices affect transportation costs, which in turn affect the price of everything on grocery store shelves, said Bob Sowers, owner of Bob's IGA and Bob's Supermarket. When Sowers receives a shipment he pays for the products and a fuel surcharge for freight. But because gas prices have gone up so dramatically, the fuel surcharge is now listed separately on the inventory sheet, he said.

Sowers said running a grocery store so far away from a metropolitan area affects his fuel surcharge, which averages $300 for a truckload of vegetables. He said the price is a 15 percent increase from last year.

"The further you go, the more you get charged," he said.

To keep prices down in his stores, Sowers said he lets his profit margins get smaller.

"Our profit (now) is about 1.5 pennies on the dollar," he said.

A White House task force led by Vice President Dick Cheney developed the plan, which would keep the industry regulated. The 105 different proposals focus on conservation and efficiency. The report also recommended expanding the production and use of coal, gas and nuclear energy.

But the plan only offers long-term solutions and does not give suggestions for gas price relief. Many Washington politicians from both parties, including Rep. Ted Strickland, D-Ohio, disagree with the White House's refusal to help curb further gas price increases, said Chad Tanner, a legislative aide for Strickland.

"It's not a bad thing that they are looking at a long term," Tanner said. "But the fact is we're facing short-term problems right now."

Democrats recommend asking the justice department to look into illegal price increases. Possible legislation could add a windfall tax that would charge oil companies for excessive profits, Tanner said. It's not a supply problem, but a price problem.

"If it were supply you'd have gas stations closing," he said.

But Athens gas stations have not noticed a decline in sales. One is Bobcat Chevron, 235 Columbus Road. Manager Randy Kasler said people will keep buying gas because they need it for driving to work.

Chevron's prices fluctuated about $.15 per gallon in the past month or so, he said.

"The other day it was $(1).79 then $(1).85 and then back to $(1).79," Kasler said.

The gas station receives a daily rack price update - the cost per gallon of gasoline - from its gas supplier. Owner Kevin Goldsberry decides how much he will charge customers based on the rack price, Kasler said.

Just like other big companies, the oil supplier does not tell Goldsberry what prices to expect in the future. But Kasler said he thinks prices will go up with Memorial Day weekend coming soon.

"(Gas is) kind of like cigarettes. It doesn't matter what they cost. If people want them or need them their gonna buy them," he said.

- The Associated Press contributed to this story