Gasoline Prices Putting A Crimp In Drivers' Pocketbooks
DALLAS (CBSDFW.COM) - Gasoline prices continue their upward trek in North Texas. Some places have gone up between 15 and 20 cents in the last week.
Almost universally the blame seems to be placed on Mideast and North African unrest and fears the turmoil will spread to major oil-producing countries.
"It's [gas prices] a drain right now, especially if you drive an SUV," says Terrance Shaw, who logs a lot of miles for his DeSoto football league. What was the price of his fill-up today? "It'd probably cost you $100," he chuckles, adding, "We actually spend about $60 a day."
Carlos Macias, of DeSoto, isn't amused by the ever-increasing gas prices. "It's effecting everything; we've got to take our kids to school and wait for three hours instead of going home," he explained. "You sit and wait for three hours so you don't make trips back and forth all the time."
Shawn Fedroff just moved to North Texas from Maryland and says the costs are out of control. "It's not good at all, it's almost too expensive to go to work."
All of the people who spoke with CBS 11 News were filling up their vehicles at Dallas' Fuel City, where owner John Benda is sympathetic to peoples' plight, even as he ordered the price of gasoline up to $3.19/gallon for regular unleaded.
"With the Middle East unrest, the prices have gone up, and they've gone up instantaneously every day this week," he explains. "It's hard on the customer… The more expensive it is people buy less; I see people coming in here with change buying fuel. I see them buying $5 in fuel, $10 in fuel; 'cause that's all the money they've got."
Benda says the high prices also affect his bottom line. "They [customer] have a limited amount of money and when fuel goes up it takes away from their income and they buy less," he said.
Higher gas prices aren't the only increases; Benda has also seen high gas prices drive up the cost of food at the convenience store inside Fuel City.
Southern Methodist University (SMU) professor Mike Davis, of the Cox School of Business, has watched overall prices trend up due to energy costs. "Especially now they're coming at a time when we're already seeing inflation in food prices," he says, "and the real concern is you've got food prices that are already going up, and then they're going to get blasted with these higher energy prices that'll be reflected in further increases in food prices."
Davis notes the increases have spread to other areas of transportation - especially jet fuel for airlines. What does that mean for your summer vacation plans? "[It'll be] more expensive; plan on not getting nearly as many bargains as you would hope on your airline tickets this summer," advised Davis.
For now, the professor is simply advising consumers to keep an eye on the situations in Africa and Asia. "If the Middle East stabilizes, especially if Saudi Arabia appears to be stable, we're not going to see quite so much action in energy prices," said Davis. "If the craziness in the Mideast continues, that's going to be reflected in very high and very unstable energy prices."
Storeowner Benda is hopeful the situation will stabilize, and expects gas prices to eventually come down. Meantime, people like Macias feel their only fallback plan is to accept the higher prices. "Complain about it, that's it, but you've got to pay and you've got to get to work."