It registers every time the Rev. Ray Hampton visits a sick parishioner.
Every time Jerry Frantzis gets a bread shipment for his pizza place.
Every time Robert Walker picks up a fare.
The surge in gas prices has bumped up costs not just for truckers and taxi drivers, but for a spectrum of other occupations, including restaurant owners, florists, and even ministers.
Many, but not all, are relaying the increases to consumers.
The average cost of a gallon of regular unleaded gas locally was $3.18 Monday, according to AAA. That was less than the $3.29 national average. But it was 9 cents higher than the regional average a month ago and 62 cents higher than the average a year ago.
There's not much Hampton, pastor of Surry Baptist Church, can do other than grumble about the oil companies.
He drives 42 miles each way from his Suffolk home to the church in Surry County three times a week. Thursday also is his visitation day, when he logs 140 to 150 miles.
"I'm burning $60 or $70 a week in gas," Hampton said.
Walker, a cab driver with Blue and White Express in Chesapeake, estimates he's spending $100 a week more for gas since last year. "Every time gas prices go up, I get a demotion," he said.
He's compensating for it by working more - 10 to 12 hours a day versus eight hours a day a year ago - and cutting personal expenses. Normally, Walker would have been in Martinsville last weekend watching the NASCAR race. This year, he saw it on TV.
Frantzis, owner of Pembroke Pizza and Pasta in Virginia Beach, said he is facing the increases both ways: He's raised pay for delivery drivers to help offset their gas costs, and he also is being charged more for food deliveries, which he attributes partly to rising fuel prices.
A bread company increased its prices by 15 percent last month, Frantzis said. Another food company last week added a $7-per-delivery fee.
"It's a little frustrating," he said. "The entire buck is being passed down the chain. I'm the last person before the customer, bearing the brunt of it. "
Many businesses have forwarded the extra costs to customers, often in what they call fuel surcharges.
In the past year, Wyatt Transfer Inc., which moves freight containers with diesel trucks, raised its fuel surcharge from 22 percent to 35 percent of its base rate, said Chick Rosemond, vice president of sales and marketing.
Sam Logan, owner of Logan's Towing & Service Inc. in Virginia Beach, said he figures one-third of his budget goes for fuel. The gas increases, he said, "damn near put me out of business" - until he raised his minimum tow price in January by about $10, to $60.
David Moore, president of Two Men and a Truck, a moving company based in Virginia Beach, said he's holding prices steady, though he's paying up to $800 more a week in gas costs since last year.
"The consumers - they're feeling the pinch, too," Moore said. "I certainly don't want to make it tighter on them."
The price of diesel fuel has shot up even faster, going from $2.71 a gallon to $3.90 in the past year in Hampton Roads, according to AAA. That's less than the current average of $3.94 statewide and $4.02 nationally.
The result for some: multimillion-dollar increases in fuel expenses.
Virginia International Terminals spent nearly $5 million on fuel, mostly diesel, from July 2007 to February. That was 34 percent - or $1.26 million - higher than in the same period the previous year, spokesman Joe Harris said.
Hampton Roads Transit also foresees a 34 percent increase in its fuel budget - from $8.3 million this year to $11.1 million in fiscal 2009, spokesman James Toscano said.
Bill Jackson, president of Tidewater Motor Truck Association, said independent truckers have been hit hard. He knows at least four locally that have shut down or reduced their fleets.
The ones most likely to survive, he said, "have significant savings accounts and can live off them until fuel prices stabilize or go down."
Taxi drivers, too, "are literally crying the blues," said Stan Slone, who manages five cab companies, including the one Walker drives for. "They can't make any money. They don't want to go after the short runs because if they have to travel very far at all to get the fare, and then the fare doesn't go very far, they can actually lose money."
Cab fares generally are set by individual cities. Slone said he plans to ask the Virginia Beach City Council for an increase. The council last increased cab fares in February 2006, to $2.25 for the first one-eighth of a mile.
Taxi driver Kevin Kelly also hopes for increases in Norfolk. "Everybody else, not being governed by the city, can raise their rates, while we cannot," he said.
Norfolk's City Council approved a $1-per-trip surcharge in 2005 and the next year incorporated it into the cab rate, which is $2.75 for the first one-seventh of a mile. The last previous increase was in 2000.
There might not be much cab drivers can do to cut down on gas, but others say they've found ways to conserve.
FedEx saved 1.2 million gallons of fuel last year, partly by sending more couriers before and after rush hour and opening "community-based stations" with a smaller radius, spokeswoman Carla Boyd said.
Locally, Greenbrier Florist in Chesapeake is trying to consolidate the twice-a-day deliveries it used to make to each city, owner Jackie Hutcheson said.
Donald Calway, co-owner of Cal'z Pizza, advises drivers to turn off their engines when making deliveries, buy the lowest-grade gas, seal their gas caps tightly - and double-check orders before they leave.
"Make sure if you're taking Pepsis that you've got them," he said. "If you don't, you've got to make the trip twice."
Philip Walzer, (757) 222-3864, phil.walzer@pilotonline.com
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Get rid of
Oil company tax breaks
Go figure
The person who seems to really support us all being gouged for gasoline we simply can't live without also happens to be a wealthy dentist. Have you paid a bill for a dental visit lately? Soon, Americans will have teeth like the Brits because no one can afford dental care. Anyway, this particular dentist also supports a "no minimum wage" system where employers can pay you as little as they want. He feels the market would make wages competitive. If left to answer only to their employees and their own guilt, most employers wouldn't pay their employees more than they pay illegal immigrants they hire under the table.
Don
Sorry for attributing SBUX to you. My oversight. However, what I believe you are referring to is ROE, return on equity, or ROA, return on assets, ratios that are very high in the oil industry. Every business has risk, and offering such comparisons is invalid. The fact remains that the oil industry was allowed to become 800lb gorillas, effectivey eliminating the possibility of new companies entering the industry and competing. Not so with retail or restaurants. What is going on can't be defended by the "free market" mantra, because it is not a free market. Oil prices are basically determined by a cartel. They control the supply/demand curve with their output. I am not advocating insured returns, but I am advocating responsible business practices, which the oil industry does not, nor has any incentive, to practice. When people cite profit margins in defense of oil companies, it just makes me laugh. It is really a red herring. I notice that those people don't cite operating margins, roa or roe. Those figures don't come to the defense of the industry...
Profit Margins and risk
I wasn't the the one who mentioned Starbucks, but OK,lets use them for an example. What I said was that the profits of oil companies were in line with others of similar risk profiles. So, what does it cost to set up a Starbucks, $100K maybe? How likely is a Starbucks to fail, assuming reasonable market research?
Now, what does it cost to drill in mile deep water and then another three miles into the Earth's crust? 10's of millions? How many dry holes must one drill for each producing well? 3 or 4?
Yet the return on investing in Starbucks is almost as high as the return on oil stocks. Considering the much higher risk involved in oil, would anyone invest in it if the return was the same as Starbucks? Of course not.
Businesses with higher risks cannot exist without higher returns. If you could put your money into an FDIC insured account at the same rate of return as stocks, the market would crash.
Business as usual...
How many red flags have to go up before the powers that be decide to react? That is why I say our leaders will not fix anything unless it affects them directly. I guess ethical business practices and economic planning and responsibility are simply words on paper when profit becomes the highest priority for big American business. Pull your head out of the sand and recognize who really is in charge of America.
I do not expect them to magically control gas prices as one person suggested. What an absurd statement.
Sorry for my utopian dreams of corporate responsibility and fiscal responsibility.
Want to talk profit margins?
Then at least be able to back it up. Don, Starbuck's PM is 6.88%, compared with XOM at 11.23%, 5.63% for Citi, 7.33% for BP, 8.98% for Chevron, 17.44% for PetroChina, 9.63% for TotalSA, 8.81% for Royal Dutch Shell. If you look at profit margins since 1955, you can see the trend skyrocket from 1980 untill 2005. As of '05, the average PM is 8.5%. I understand economics, sir, and I also know when I am being taken. These companies are posting record profits in the BILLIONS, so don't tell me that they need the tax breaks to sustain themselves. They will do just fine without them.
Doesn't matter
It's still cheaper than just about anywhere else in the world. If really want to reduce your fuel costs, you will have to reduce your consumption. Smaller cars, public transport, bicycles(gasp, exercise), and so on are the future. Build the public transport grid of trains before the cost increases. I think some of you truly do not understand how bad this is going to get.
George & Whatever
Just what do you want our "leaders" to do about gas prices? Set a maximum price? What do you think would happen if a maximum price for gasoline was set at, say $2.50/gal?
This is a trick question, we already know, because it has been tried.
Give up?
You would go to the gas station to fill up and there wouldn't be any gasoline available. But the price in Asia and Europe would go down a few pennies, so they would use more.
There is nothing the government can do to help other than to get out of the way and let the oil companies drill where the oil is. Oil companies succeed by getting gasoline to you at the lowest price they can to maximize market share. No company ever gets ahead by charging more than its competitors, only government can do that.
Whatever
Very well said
yawn.... its late
I find it shockingly curious that we, the working class, still hold onto the hope that our "leaders" will correct the problems that are eating up everyone below the top class in America.
In my opinion the people in charge of fixing the problems are not fixing anything except for their portfolios and the portfolios of the big industries that have financed campaigns into office. They are not doing anything substantial because they are not affected by OUR problems. They don't have to worry about ridiculous health care, escalating tuitions, gas-gone-wild, or mortage lunacy. $10.00 a gallon for gas is nothing to our elite mobsters.
Want to stop the war? I bet it would be ended quicker, or funded better if there were significant numbers of family members of our Congress and House of Representatives fighting the war. Where are their children? Attending the best schools in the country while our children and loved ones do their "duty". Look at the big picture.
Bottom line is this: No one in charge will do anything substantial unless something is in it for them, their sugar-daddies corporations, or their elite children have to actually sacrifice their lives for our nation.
Georges
As Americans, we enjoy purchasing whatever groceries we like; taking into account our income and what groceries we can afford is an individual responsibility. Do not count on this newspaper, news programs on ABC, CBS or NBC or politicians (especially the three primary candidates) to give you the full picture. They have a limited amount of time and they make their money by selling advertisement. Do the research yourself in regards to Economics and related topics like supply & demand, profit margins, business models, etc. Check out Milton Friedman's book Capitalism & Freedom. It's an excellent read.
Tax Breaks
Does anyone else see the Congressional hearings for what they were? They were a way for the Congressmen to say "look constituents(voters), we are trying to take action" If congress took away the tax breaks, would they lower prices?? NO!! of course not!! they would raise them to make up the difference! they have already calculated the tax breaks into the bottom line, and essentially, have already spent it. What the truckers did is what will work. The protest was a taste of the potential that they have if they organize and unite. I, personally, will suck up the lack of goods for a few weeks if it puts sufficient pressure on the oil companies!
Its not rising due to supply & demand!!!! Its.....
OIL COMMODITY SPECULATORS / TRADERS....they are making a pretty penny on all of this for them and there investors. For crying out loud, what incentive do they have to stop what they are doing w/o regulation if they are making money hand over fist.
Ed Baskins
"People like school teachers, policemen, utility workers, me, you, and every other ordinary person who has a retirement account and holds these stocks."
Well, if you can afford to own gasoline company stock then I can see why your feel the gasoline profit is within reason, but for those of us who cannot.......well, that's OK as long as you can afford it. How you fixed for groceries?
Economics
Here is to the professor of economics why did these prices start to rise right after Hurricane Katrina? (oh yes it damaged the refineries) that was one excuse. There are many factors that are driving the prices up. It's called Supply and Demand. If you don't explore and tap into other resources and don't build enough refineries of course prices will rise after all it's about business and our huge retirement accounts (yeah right!!). And get this China is taping into resources right off our coast (see international waters). So you see the oil execs will continue to make billions (because congress feeble attempt to scold these guys are a joke!! and the jokes on us.
RE "sigh"
That is why I only drink tap water :)
"the top 1% own almost half of all stocks"
Maybe as an overall statistic on the stock market, however, I beg to differ in the case of Exxon for example, the percentage of shares held by institutions(mutual funds, pensions, etc, (this is where the teachers, etc. come in)) is 52.8%, the percentage held by insiders (Exxon executives and officers) is 0.09%, the other 47% is held by individual stock holders that range from the very rich to the average Joe. Yes, the rich are going to own most of the stocks, but in the case of this particular oil company, I do not see it.
*sigh*
Ed - the top 1% own almost half of all stocks. You can't really say that the small time investors come out ahead when fuel prices rise. I'd also like to point out that Americans foolishly pay more for bottled water than gasoline. Bottled water doesn't have the same energy potential as fossil fuels.
RE: Wm D Tabor DDS continued...
I also forgot to add that the individual gas stations are not allowed to charge below a certain price set by the government and also are not allowed to post the amount of tax on each gallon.
RE: Profit vs Profit Margin
"Oil company profits are large, but their profit margins are no higher than other businesses with a similar risk profile. So, their profits are exactly what they should be if they are to do their jobs. Artificially lowering their profits by government action would depress their exploration efforts leading to even higher prices later on."
The 5 major oil companies that testified before Congress 4/1 had profits last year of $123 Billion dollars. They spent $40 Million in their exploration efforts. DUH!
There is a huge difference from their porfit and their new research. I'm glad you think their profit is OK, because I sure as heck see a scam.
I'm also happy you can afford these gas prices, because most of us find it difficult including sky rocketing prices at the grocery store.
RE: Wm D Tabor DDS
Well, I am glad someone else understands the economics here. The profit margins of the oil companies are only a fraction of what companies like Starbucks is. Who gets all those profits? People like school teachers, policemen, utility workers, me, you, and every other ordinary person who has a retirement account and holds these stocks. The price of the dollar is another factor, when the dollar drops in value, the price of a barrel of imported oil goes up and no one makes a bigger profit because of it.
No Difference
There is no difference between a drug dealer and a Oil Excec. If you come up with a alternative fuel they will make sure they pay you off or bump you off. Fuel prices are driven by greed plain and simple
TOO STUPID
Depending on where you live, you could be paying as much as 62 cents tax on every gallon of gasoline you buy (CA=72 cents on diesel!). On the other hand, oil companies make about 10.4 cents per gallon profit. Now you tell me, who is doing the gouging?
And the Democrat politician smiles, for he knows that his constituents are too stupid to figure it out.
http://www.michigangasprices.com/tax_info.aspx
Oil Prices
Oil Prices are driven by the market, investors, futures and all that stuff I dont really understand. Your going to tell me in the past month stuff has happend to warrant a 80 cent increase in diesel prices, I guess those guys do??
You want domestic fuel well get rid of all the greenies that wont let us drill in our country and on our shores. We import 80 percent of our oil and gas from Canada and Mexico, what crap.
It's all about our ignorance and the ignorance of politicians.
OH! I forgot and greed of politicians. Bio-fuel is not the answer becaue it cost more in fuel to produce than it saves, so eat the corn, don't burn it. Coal gasification is a good source of fuel. Natural gas is pleatiful and there's NO such thing as an oil spill from natural gas. We have centuries of supply off the coast of VA. Competition is a good thing. Dinosaurs like me remember the multitude of different oil companies from the fifties and sixties. Now day's we only have a handful of oil companies and most of them are not concerned about U.S. best interest. Most the lands that oil and gas is coming from is public land. The leases should be awarded only to U.S. owned oil and gas companies. How many oil spills did you see after Katrina? NONE! Yet hundreds of rigs were distroyed or torn from their morings. Technology has mad most oil spills a thing of the past. Refineries are another example of technology advances. They are safe, let's get new investors the permits to build some. Make it where the big oil companies can't kill the competition off.
And another thing.....
Why does the gov't feel it is the oil companies responsibility to find "alternitive energy sources"? They are getting fat off the hundreds of billions in profits. Why should they actively look for "alternitive fuel sources"? Even if they do, a oil company is the very last business I want to be in charge of another type of energy. They will just find another way to rape the american citizen like they've been doing for the last 30 years.
That's funny
Check out this quote:
"Well then stop buying items from the gas station stores!! If they start losing money, something would have to happen. Mobil, Exxon, Shell, BP all made billons-and they don’t care if the rest of us go broke!!! "
Just FYI, the majority of these store owners are paid via there inside receipts. They get a small percentage of the fuel sales. They try to pay their rent with. Everytime gas goes up, they are victimized far more than you are as the consumer. They are literally going broke in many cases. The oil companies lease these locations because they know there is no money in operating them. So if the public were to heed "you view," it would only hurt the consumer as the cheap labor would disappear to ring up your smokes and gas.
This is a prime example of why you do not allow your views to be shaped by those who lack substance. They will lead you down the path of misery only to find they were mistaken.
What's funny is that many of these same posters are adamantly against light rail.
A few points
Before anyone screams about evil oil company profits, if you have a 401k or pension, you better first find out where you're invested (I wouldn't want anyone here to look like a hypocrite).
Second, unless the global economy enters into a depression, don't count on prices coming down soon. Emerging markets (China and India, for example) have an insatiable appetite for energy. They're driving up demand while supply is limited.
Third, alternative energy has trade-offs. With bio-fuels, for example, what do you want, cheap gas or cheap food? Pick one. Electric cars and our infrastructure's ability to support them is fantasy-land stuff for now. In the meantime, adjust your lifestyles. Gas prices will continue to trend upwards.
No Gordon, its the stupid government
First, the reduction in the number of oil companies to a few multinationals is the result of clumsy manipulation of the market by government.
Petroleum profits go through boom and bust cycles. Past attempts to lower oil company profits(Windfall Profits taxes, price controls and the Fuel Use Act)during boom times caused domestic oil producers to fail during the bust times, being bought out by the multinationals with their profits from overseas operations not affected by Congressional meddling. So, the vertical integration problem you are worried about is the result of exactly the kind of interference you seek now.
But even so, analysis by the GAO has found that petroleum is sufficiently fungible so that vertical integration has no effect on pricing.
If you want the prices to go down, we need to increase the supply domestically.
Its the monopoly stupid
I wonder how things would change if the oil companies did not have a vertical monopoly. How would prices change if oil producers could only sell oil, if refiners could only refine and gas stations could buy from any company they wanted to. Refiners could buy oil from any producers that offered the lowest prices.Gas stations could buy from the refiners with the lowest prices. As it is now Exon has no incentive to lower the price of oil. It make money when it "sells" its oil to its refiners and again when it "sells" to its gas stations.
The "free market cry" is only heard when greed is attacked, but not when a market is monopolised by a few companies.
Profit vs Profit MArgin
Oil company profits are large, but their profit margins are no higher than other businesses with a similar risk profile. That is how the free market works, if investors could get the same return elsewhere at lower risk, oil companies would not be able to raise capital. So, their profits are exactly what they should be if they are to do their jobs. Artificially lowering their profits by government action would depress their exploration efforts leading to even higher prices later on.
If you want to assess blame for high prices, look to NIMBYists and environmentalists who keep huge petroleum resources out of reach in the Arctic and off our shores. Oil Shales in the West, and Tar Sands in Canada could provide us with petroleum for a century, but they have to be strip mined. So far, they have been kept out of reach for environmental concerns, but give us a few summers of $4+ gas and the public will demand those resources get tapped, even if we have to drill through the skull of a baby seal to get them.