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Friday, November 2, 2007

Local gas prices rise again




ENLARGE
The rising fuel prices have caused Howard Pierson to look for another job.

Pierson, a delivery driver for Domino's Pizza, said the high fuel prices have cut too deep into his pocketbook.

"It affects me a lot," he said. "It's not worth it. We get compensated a little, but not enough."

Gas prices have gone up by about 25 cents in the last three to four days.

Pierson, who has worked at Domino's for 30 months, said when he started delivering pizzas, fuel cost less than $2 a gallon.

Michael Geeser, spokesman for the American Automobile Association of Nevada, said the average price in Fallon is a little higher than larger communities.

The average cost of gasoline for the state is $3.04 a gallon. Reno's cost is $3.19, and Las Vegas motorists pay about $2.95 at the pumps.

The lowest price in Fallon Thursday morning was $3.18 a gallon for regular unleaded gas.

Geeser said gas prices will continue to increase through November before decreasing in December and increasing again in January.

The rapid increase, he said, is the result of crude oil prices rising over the last few months.

Consumers did not pay the increased cost right away but are now paying for the increase.

In early 2007, a barrel of crude oil was selling for $40 a barrel. Now, it's almost $90 a barrel.

Roger Singh, owner of Eagle Gasoline, said he is setting his prices by what it costs to run his business.

Customers, he added, have started to come in to yell at him about the increased fuel costs. He said most do not know station owners are not making much of a profit off the increased price.

"We are the middle people. We have to cover our cost," he said.

Singh tries to keep his fuel prices low, but realizes costs are likely to increase because of the upcoming holiday season.

"People cannot survive one day without gas," he said. "I am just paying my bills. I do not try to live off people."

Gas purchases have gone up at Eagle Gasoline, partly because consumers want to fill up before prices increase again.

Richard Pressey, who was filling up his Chevrolet Silverado pickup at the pumps Thursday morning, said there is not much he can do about the cost because he has to drive.

"It's pretty hard when you live in a rural area," he said, adding that he is making several trips to Carson City to visit his mother, who is in the hospital.

Pressey said he tries to maximize the gas he uses, but added it is difficult to do sometimes.

"I remember when gas was 27 cents a gallon," he said, mentioning his truck gets 20 miles per gallon.

Jessica Mills, who was also fueling up Thursday morning, said gas should never have to go above $3 a gallon.

"I try to save as much as I can. I just drive to work and back. I don't drive as much as I used to," she said.

Public entities are saying they have to deal with the rising costs as there is no way around it.

Lt. Frank Shyne of the Fallon Police Department said his agency - regardless of the increased costs of gas - cannot change how it does its job.

"It's an economic challenge, but we haven't done anything differently," he said.

Shyne said gas prices increase and decrease throughout the year.

"It kind of levels itself out," he said. "Hopefully, they will come down by the end of the year."

Churchill County School District Superintendent Carolyn Ross said the rising costs are driving the district's budget "out of sight."

She said the district tried to budget for a possible fuel cost increase, but added it was a projection so it was hard to be exact.

Finance Director Jim Sustacha said the district did expect fuel prices to go up and planned accordingly.

"It will have an impact on the school district, but we must spend the money for fuel to bring the children to school," Sustacha said.

Some people are taking other steps to offset the fuel costs.

Jim Nix of Fallon Auto Mall said he is not surprised that consumers started looking at hybrid vehicles when gas increased to more than $3 a gallon.

Nix also said more and more people are looking at economy cars in hopes of saving money at the pumps.

"The larger vehicles do not sell like they did five years ago," he said.


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