Diesel Dominoes: Higher costs could mean paying $3 for a gallon of milk, add $400 to car cost. Adam Hatch, The Herald-Sun, Durham, NC

Rising diesel prices have truckers fuming and could soon raise a stink with consumers as the cost of getting goods to market increases.

High gas prices could eventually mean paying $3 for a gallon of milk or $400 extra on a new car, experts say, all because it will be more expensive to get it on the shelf or on the lot.

The price of diesel fuel, generally ignored outside the transportation industry, is slowly raising the price of nearly every commodity across the nation. And expectations are that gas prices will rise even higher still--10-15 cents more per gallon of diesel and even more for unleaded, according to AAA Carolinas in Charlotte.

Wednesday, some Durham gas stations were charging $1.45 a gallon for diesel, enraging drivers and depleting private truckers' bank accounts.

"It's criminal what they're charging," said Jerry Houston, a private trucker from New York who stopped in Durham on Wednesday to fill up before heading south. "How am I supposed to get by? There's no way around it until we get to Georgia, where it's a little better."

Increases in trucking costs out the squeeze on everyone. America moves everything from food to industrial waste down the highways inside diesel-fuel-swallowing vehicles.

Although prices vary from state to state, diesel fuel in North Carolina has increased from $1.01 per gallon 15 months ago to around $1.40 a gallon this week--an increase of 38.6 per cent.

When the price at the pump increases, those costs are passed onto shipping customers and they, in turn, pass that cost on to consumers.

"We add a fuel surcharge to the trucks based on how high the price goes," said Patrick Smith, manager of Durham's Allens Expedited trucking company. "Every trucking company does it. If we didn't do it, we wouldn't stay in business."

The spike in diesel costs could pump grocery bills as much as 10 percent higher over the next 45 days.

"A price increase may be inevitable," said Chris Ahearn, Food Lion spokeswoman. "So far, we haven't passed the price increases on to our customers. but the problem appears to have no end in sight."

Many airlines, which use kerosene to fuel their jets, have already added fuel surcharges to tickets to cover increased gas prices.

American Airlines added a $10 fee each way for flights in the United States and Canada two weeks ago. Any future increases will depend on what the market does, sp0okesman Mark Kienzle said.

Many cities across the state are wrestling with the problems, trying to keep from passing added costs onto consumers.

In Durham, DATA's 32 buses consume 600,000 gallons of gas a year. The department budgeted for diesel costing 70 cents per gallon before taxes, transit administrator Steve Mancuso said.

During the first six months of the current fiscal year, DATA managed to buy gas for less than that. It's now paying 83 cents per gallon, and that's down from the 92 cents it was paying last month.

Still, Mancuso said it's too early to talk about raising fares. "Having gone six months less than [budgeted], we can go above as long as it doesn't continue or the price increase more," he said.

Elsewhere in North Caroline, Charlotte Transit says it may have to pay an additional $2.7 million in fuel costs this year. That cost must be made up somewhere, but it won't be done with increased fares, said Michael Melaniphy, general manager for Charlotte Transit.

The city of Winston-Salem operates about 1,700 pieces of equipment--many of them diesels--to keep the city clean and perform public functions.

"We're still having to get the work done," said Sandy Barfoot, fleet services director. "But it's just much more expensive. We like to think people aren't out there just driving around."

The increased gas prices for diesel, kerosene and unleaded began when the Organization of Petroleum Exporting Countries--11, mostly Middle Eastern countries--agreed to limit production.

That decision coincided with a cold winter in the United States, driving up heating costs in the Northeast and Midwest especially. At the same time, many Asian economies rebounded, increasing demand for fuel there.

{Any typos are the responsibility of OG.]

-- Old Git (anon@spamproblems.com), February 17, 2000

Answers

OG, you have to understand that this is not a problem.

After all, the cost of living number excludes gas and food, so there won't be any inflation because of this.

It's all a figment of your imagination. Just stretch out and take a nice nap......close your eyes.....close.....close them.......now go back to sleep.....isn't that much better. When you wake up it will all be gone -- (your money that is).

See how silly we are to worry our little heads about such things?

-- rocky (rknolls@no.spam), February 17, 2000.

Now way would our beloved leaders let this happen, and even if they did it is not y2k. They are always making scapegoats. "Its not y2k, its the greedy Arabs. They are the ones doing this to you."

-- ,-, (comma@dash.comma), February 17, 2000.

Here in my neck of the woods Diesel $2.49 Kerosene $1.99 Gasoline $1.49 Upstate New York :-(

-- still alert (stillalert@aol.com), February 17, 2000.

America is so wealthy that it can absorb any inflation rate. So what if prices are higher. It changes nothing. Bill Clinton is in control. The stock market is in the stratosphere and there will never be a recession again.

We are in a new paradigm.

Relax. If you have children, buy Futures contracts on Silver, you'll be just fine...

-- Joseph Almond (sa2000@webtv.net), February 17, 2000.

I've heard it said that if America was a stock it'd be very profitable to sell it 'short'. How sad that our people would even think that. It's hard to believe that our 'leaders' in DC are as corrupt and 'uncaring' ("for the Children" or otherwise) as they obviously are.

The current presidential political debates are meaningless shams since they're designed to EXCLUDE those with 'radical' ideas such as restoring our Constitutional goverment, defending our national sovereignty (and borders!) and re-establishing an economic climate where American industry can survive and thrive again. Oh, BLUSH!, what awful ideas!!!

It's sad that such 'alien' concepts are excluded from the debate. All 'major' (i.e. those having received huge sums of money from TPTB) candidates are UN loving Globalists who would sell out this country in a heartbeat when they were told to do so by TPTB. They have and will continue to stupify and mesmorize the sheeple with illegal drugs and the balloon.com stock market. They have gutted and dishonored our once proud military.

This can only end badly.

-- Sad (TimesFor@America.com), February 17, 2000.

Sad obviously hasn't seen a single Republican debate yet. How sad. Look up Keyes 2000 and donate or offer your services as a volunteer. You're wasting valuable time.

-- Will continue (farming@home.com), February 17, 2000.

Please explain why we pay more for our food if a cost increases, but when a cost decreases, we pay the same. Last year when hog prices were ten cents a pound to the farmer, why were we still paying the same high price for bacon and pork chops in the store. It just does not make sense. I am glad I have my 300 gallon tank of gas full. I knew I should have put in a second tank last fall. Well, it is time for me to go kill a chicken for dinner to eat tonight.

-- chicken farmer (bwana@inna.net), February 17, 2000.

Yes, Chicken!

Your post got me wondering...WHY is OPEC the "bad guy?" Just because THEY limit production and raise prices, why should this affect the oil that comes from US or elsewhere? Who is price gouging here? They all are! (I know this is a rhetorical question; "supply and demand). The cost to procure a gallon of domestic crude has nothing to do with the cost of OPEC crude.

I wonder if they can continue to cover up the fact that the root cause is Y2K related?

-- No Polly (nopolly@hotmail.com), February 17, 2000.

300 gallons of gas? Shame on you! Weren't you listening when the gummint said we had plenty of oil for Y2k, and there was no need for anyone to buy more than a half a tank? Hmm, maybe you WERE listening!

-- bw (home@puget.sound), February 17, 2000.

OG:

What have you seen at the stores? I still go to the store every other day [mostly for fun], but I'm still seeing the prices I've seen for quite a while with perhaps a major increase in the price of bacon. ..meaning that bacon had gone up to almost $5.00/lb. Could this be due to the "floating pigs" and the Floyd experience?

-- Anita (notgiving@anymore.thingee), February 17, 2000.

I already pay $3 a gallon for milk, can't afford a new car so what's an "extra" $400? The economy is booming thanks to Mr Clinton, (I read that this morning). With this booming economy an extra few bucks here and there won't hurt. I sure am glad the y2k didn't show up, I don't know what I'd do if things got worse in the booming economy. I guess I'll go kill a chicken for dinner too.

-- me-- (me@my.net), February 17, 2000.

Yes here in the PNW I am seeing some price jumps on gas and food and certainly expect more.

What I wonder about is: is it really OPEC? or is it a combination of OPEC and computer problematic machinery (dare I say, Y2K?) not getting the stuff pumped or refined or whatever? Or have we (meaning the US) just pissed off every nation around and they don't want to play anymore?

-- Sammie (sammiex0@yahoo.com), February 17, 2000.

"Will continue"

We're on the same page...Mr. Keyes would have my vote in a NY microsecond! Unfortunately he's not considered a 'major' candidate though and has already been excluded by TPTB from being a major party candidate.

-- Sad (ToSeeAmericaThis@Way.com), February 17, 2000.

Anita, I have bought very few groceries since the beginning of the year. I don't like shopping and once every two weeks is about as much as I can stand. Daily grocery store trips for fun are beyond my ken and available time. However, I have noticed that the on-sale price for Twinings tea has jumped about 20% since it was last on sale in December and the same for Campbell's tomato soup. The organic dairy and bakery products I buy come from a whole foods store via a local supplier and there has been no price increase yet. It now costs about $7 more to fill our gas tank.

As a vegetarian, I would have no idea why the dead pig you buy is more expensive.

-- Old Git (anon@spamproblems.com), February 17, 2000.

OG:

I forgot that your health problems interfere with your going out........forgot about your vegetarian status also.

Those things aside, however, I probably would have responded in a similar fashion when I lived in Illinois. The grocery stores were something that we frequented only when a need arose. Here in Texas, the local Alberton's is similar in many ways to the local pub or the barber shop.

Last week my mom needed paper towels. All I had to do was LOOK at a paper towel display and I found myself in a 15-minute conversation with a man who had cancer of the nose, [LOL], and plenty of other things to discuss. This week I noticed a woman with rose petals in a container. I didn't know what they were, or why anyone would buy just the petals [at a local Albertson's no less], so asked, and found myself in a 3-way conversation with folks who know MUCH MORE than I ever wanted to know about rose petals. It's an education if you let it be. [grin]

Ever since Paula [chow babe] posted that thing about the price of minced onions, I've been curious to see what's been happening at MY local store. Thank you, Paula. Milk here is STILL $1.49. Bread is still about a buck. Canned goods are still going for the same prices on sale that they were 6 months ago. I roam ALL the aisles...checking the prices. The entire effort takes less time than most folks spend watching a sitcom on T.V., and it's more fun [to me].

-- Anita (notgiving@anymore.com), February 17, 2000.

"High gas prices could eventually mean paying $3 for a gallon of milk"

Here in the People's Republic of California milk is already $3.75/gal and hi-test at the Shell down the street is $1.99/gal. We'll never know the difference. I wonder how unleaded would be on my corn flakes?

-- CA 4x4 (4x4@my.house), February 17, 2000.

CA 4X4: Good one, but don't try it. A static spark over your cereal bowl could blow your face off.

-- Y2kObserver (Y2kObserver@nowhere.com), February 17, 2000.

all you folks talking about killing a chicken need to help me out. I have 4 roosters that crow all night and I can't find the heart to do them in. Is there some painless way, I would love to cook them, it's just that you have to kill them first.

-- terry (tmcmi@alltel.net), February 17, 2000.

You guys should try shopping in Canada. Fortunately I have plenty of milk in my freezer (for Y2K) but paid $2.72 per US gallon of gas today.

-- Kath (wingy@netcom.ca), February 17, 2000.