Gas costs make driving a drag

www1.tcpalm.com By Nadia Gergis Staff Writer March 16, 2003

Anthony Dalle isn't taking his family out to dinner anymore.

Cutting corners and watching the family's budget is becoming more of an obsession for the owner of Coastal One Maintenance in Stuart — all because of higher gasoline prices.

"Gas used to cost me $500 a month," said Dalle, who specializes in home repairs. "Then it became $700, now it is $1,000. I have to watch my expenses so much now."

Dalle, whose territory stretches from Wellington to Fort Pierce, is considering charging customers a 5 to 10 percent surcharge just to keep his business afloat.

"It makes me depressed, I don't know what is going to happen next," said Dalle, as he filled up his Ford truck Wednesday at a 7-Eleven in Palm City.

Dalle isn't alone is making adjustments to his budget and transportation costs. Soaring gas prices are causing more and more Treasure Coast and Palm Beach County residents to pinch their pennies and make fewer trips in their vehicles, especially drivers with sport utility vehicles and large trucks.

"I try to get rides to and from work whenever I can," said Kathy Santilli, a manager at the 7-Eleven who owns a Nissan SUV.

Prices for regular unleaded, self-serve gasoline on Wednesday shot up to an average of $1.70 per gallon — the highest ever recorded by AAA Auto South Club. That's 10.5 cents higher than the same date last month. Compared with a year ago, consumers in Florida now are paying 50 cents more for a gallon of gas.

Other gasoline grades also jumped in Florida. Mid-grade climbed 11.4 cents to a statewide average of $1.84 per gallon. Premium rose 11.6 cents to an average of $1.88, while diesel fuel rocketed 21.5 cents to an average of $1.89 per gallon.

Topping the state in prices at the pump was the West Palm Beach-Boca Raton market, where the average cost of regular unleaded was $1.78 per gallon.

Along Indiantown Road in Jupiter, service station gas prices for regular unleaded Thursday peaked at $1.85 per gallon at the Mobile station on the northwest corner of the intersection with Central Boulevard. Although the Hess station across the street offered a competitive $1.75 per gallon, the best regular gas prices on Indiantown Road could be found at the Circle K, 815 W. Indiantown Road, where a gallon could be purchased for $1.73.

"A combination of crude oil prices, low inventories, bad weather up north and the volatile situation with Iraq are making gas prices horrendous for consumers," said Gregg Laskoski, managing director of public and government relations for AAA Auto Club South.

The American Petroleum Institute says the lack of crude oil imports from Venezuela, one of the biggest exporters of oil to the United States, is the largest factor contributing to the gasoline price hikes.

"We had a supply disruption from Venezuela because of workers going on strike," said Bill Bush, a spokesman for the API. "Any severe disruption will affect crude oil prices."

Also contributing to the problem is the unusually cold weather gripping the Northeast and Midwest. Refineries, industry officials say, have been forced to stop making gasoline to produce more heating fuel.

And, to make matters worse, prices of crude oil might keep increasing, said Ron Planting, manager of information and analysis at the API.

"Retail prices usually lag behind crude oil prices, so who knows what we are in for in the future," he said.

That means motorists looking for relief may be in for a long wait.

"I think it's ridiculous that we have to pay so much, when the prices vary so much from station to station and state to state," said Jeanne Kruz of Jupiter. "It makes me wonder who is really controlling gas prices."

Harry Simmons of Palm Beach Gardens said the higher prices were making him rely more on his bicycle for quick trips to the grocery store and video rental shop.

"As these prices get closer and closer to $2, I find myself riding my bike instead of jumping in the car," Simmons said, as he propped his beach cruiser next to a bench at the Juno Beach Pier. "I can't even imagine how high the gas prices are going to climb once we start shooting over in Iraq."

Business writer Chris Kauffmann and staff writer James Russell contributed to this report.