Fuel costs putting pinch on budgets

CINDY WOOD/independent feature writer

It can’t come soon enough.

Motorists are seeing a decrease in fuel prices, but it’s been a long time coming, say local residents who are nothing short of disgusted with the budget-busting cost of fuel.

Families and businesses alike have had to cut back in other areas just to keep gasoline in their vehicles. For Catherine Nicholson, a Van Wert High School graduate and student at The Ohio State University, the higher prices at the pump mean fewer visits home. “It’s absolutely horrible,” Nicholson said. “My boyfriend and I live only 25 minutes away from each other and we’ve had to cut back on spending time together.

“I don’t come back to see my family because I can’t afford the gas,” she added. “It really needs to be fixed. I really think it will come down to people not being able to afford to go to work or school.”

That concern rings true for college student Meagan Freeman, who is transferring schools in the fall to deal with the higher gas prices. Freeman’s mother, Dawn, said her daughter is spending $100 a week on gas to drive to Lima five days a week. “It’s cheaper to pay a loan payment at a more expensive college than to drive to Lima for one or two classes a day,” she said.

Nationwide, gas prices were on the rise for 44 consecutive days, until they plateaued late last week, averaging $3.98 a gallon, according to AAA. Local motorists, though, were met with prices ranging from $4.09 to $4.15 a gallon recently before they finally fell back below the $4 mark.

It certainly doesn’t go far, said Neomi Jones of Van Wert. “Fifteen dollars for 3.8 gallons? That doesn’t last long, maybe two days,” Jones noted. “We only have one vehicle and so many places to go, school, practices and my husband’s work. I try to limit my running but it’s hard when you have three children that have to be in three different places at times.”

Even with crude oil prices falling 15 percent recently — the largest decrease in over two years — and the value of the dollar strengthening, it will be quite some time before consumers see a price decrease at the pump, industry analysts say.

Why? Simple math, and relieved consumers, said Matt Lewis, an economist at Ohio State University. Lewis said once prices fall, consumers stop shopping for the best price, allowing stations to eke out more profits as prices are coming down. “Consumers shop around more intensely when prices are going up,” Lewis stated in an article posted recently on msnbc.com. “When they’re falling, they don’t shop around as much.”

For now, though, local consumers are comparison shopping, and websites such as www.gasbuddy.com allow motorists a quick glance at prices around their local area. But for some, the price of fuel has become unbearable, with Deb Gottschalk of Middle Point saying she’s just staying home whenever she can. “I’ve become the ultimate hillbilly, sitting at home and watching the grass grow up around my vehicle.”

The pinch at the pump is not only affecting families. For businesses centered around transportation, the rising cost of fuel can decimate budgets. “Our fuel bill is skyrocketing,” said Therese Marshall, office manager at the Van Wert County Council on Aging, which offers transportation to area senior citizens. “We’re making trips to Lima and Fort Wayne on a regular basis, and with gas prices near four dollars a gallon, it’s easy to see that our fuel budget is stressed, to say the least.”

To ease the strain, the local non-profit agency is holding a Designer Purse Bingo fundraiser on June 17 in an effort to raise enough funds for fuel to get through the summer. “We have to do something to help raise money for fuel,” Marshall noted. “If we raise enough money for our fundraiser, we’re hoping we can get through the summer without any limitations to our transportation program.”

Similarly, newspaper carriers are feeling the crunch as well, said Laura Morgan, a carrier for two area newspapers. “Those of us driving for a living have no choice but to buy gas no matter what the price,” Morgan said. “Newspaper carriers are affected more than most people realize. I have to buy nine gallons a day … or I don’t work.”

The cost of fuel reaches far and wide and stretches into the farming industry, which relies heavily on oil and natural gas. According to the U.S. Department of Agriculture, food costs will rise between 3 and 4 percent this year, in comparison to only an eight-tenths of a percent increase last year.

Local farmer Cheri Oechsle is certainly feeling the effects of fuel prices. Oechsle estimates fuel expenses for her family’s farming operation will double last year’s.

“We anticipate having to raise the cost of farm products to our buyers with the increased fuel costs,” Oechsle said. “And with four trucks in the driveway, economical is not in the vocabulary anymore.”

To ease the strain, the family is taking fewer trips and considering canceling summer plans. “Not fun,” she added.

The Weiss family of Van Wert is also making modifications to their daily routines to counter the effects fuel prices have had on their budget.

“The kids are riding the bus to and from school on most days instead of me driving them,” Jessica Weiss said, adding that the family purchased a cheap car with good gas mileage for her husband’s evening trips to Lima for school.

“We also condense our trips for errands, and buy gas out of town when we are there.”

Debe Brouillard of Van Wert is making up for rising gas costs in other areas. “I’m planting a bigger garden than normal so I can preserve more this summer,” she said, adding, though, that gas costs will undoubtedly affect visits to her grandchild this summer.

Brouillard also added that any out-of-town entertainment would need serious consideration. “I’m also making a list of what I need from where, and then I make one single trip,” she added.

Despite all the doom and gloom, analysts say consumers should see some relief in the form of falling prices in the next two months. Until then, local motorists will continue to pinch pennies, travel less, and frown when fueling up.