As gas prices rise, public transportation becomes increasingly more expensive
Area transportation firms that rely on diesel fuel supplies must reach deeper into the company coffers to operate their buses as costs continue to escalate throughout the country. George Hardy, general manager for Fayette Area Coordinated Transportation (FACT), said that officials are seeing daily increases in the operational costs that are for the most part tied to rising costs at the gas pump.
For every one-cent price hike for fuel, the transportation firm spends an additional $2,000, said Hardy.
According to the federal Department of Energy Web site, diesel fuel prices jumped 7.2-cents during the week of Oct. 11 to Oct. 18 and 76.1-cents since last year.
Diesel-powered buses and trucks traveling in the lower Atlantic states’ region, including North and South Carolina, Virginia and Florida are paying $2.131 for fuel along the highway. Locally, prices are averaging $2.267 while those traveling to the West Coast states are finding costs averaging $2.337.
As costs escalate, Hardy said, ridership is also on the increase, which could be tied to regular drivers opting to leave their car at home and take the bus.
“It’s a mixed blessing,” he said in comparing the higher fuel costs to a 40-percent rise in the number of people accessing the public transportation service over the past year.
To garner additional riders FACT has expanded hours of operation and service areas. One of the most impacted services is the now available transportation to Nemacolin Woodlands and Spa, one of the county’s largest employers.
“Workers now make their way to Uniontown and for $35 a month we take them to the resort,” said Hardy. “They can’t operate their vehicle for that amount of money.”
FACT has yet to raise fares for its public transportation bus service or its Shared-Ride program, which gives riders curb-to-curb service. Hardy, however, said that those taking advantage of the curb-to-curb program will soon see a price increase.
“We’ve been working with PennDOT for a fare increase that is directly tied to increased fuel prices,” he said.
The regular bus service fares are slated to remain intact until June 2005.
Rita Rosso, assistant executive director of the Mid-Mon Valley Transit Authority that services 21 communities in the Charleroi, Monessen, California and Belle Vernon areas, said that the company budgeted for a $1 per gallon for diesel fuel costs as it prepared its spending plan earlier in the year, but is now paying $1.65 per gallon in tax-exempt bulk fuel purchases.
To defray the escalating fuel costs, riders will soon be asked to pay nearly 25-percent more to ride the bus line.
“Hopefully, we’ll be able to cover what the shortage is,” said Rosso. “It’s been tough. We’re just getting by.”
Randy Richter, general manager of Nelson Bus Lines, a transportation service for the Connellsville Area School District, said that the company is “biting the bullet” because it is locked in to a recent long-term contract that does not allow for increases in fuel costs.
“It’s taking a toll because we are not reimbursed for any of the additional costs,” said Richter. “I would have liked to have had a fuel clause built into the contract, but that didn’t happen.”
The company is preparing to enter into contract negotiations with the Frazier School District whose current agreement expires in June.
Richter said he is hoping to secure a contract that will allow the firm to pass along any future fuel increases.
The charter bus trip service also offered by the Vanderbilt-based company has remained steady, said Richter, despite additional costs being levied on the groups and organizations traveling to various destinations.
“They understand that there has been an increase in (gas) prices,” he said.
Edenfield Stages of New Salem has trimmed its staff and reduced its hours of operation to compensate for the rising fuel costs.
The company provides transportation for the Uniontown School District and has an in-place fuel clause that defrays any additional costs attributed to fuel prices.
Company president Donald Kissell estimated that an additional 47-percent has been added to district transportation fuel bill since the start of the school year.
The motorcoach service cost has been maintained, said Kissell, because of the area competition to provide similar services.
“(The fuel price increase) is just something that we have had to absorb,” he said.
The company is also locked in to a contract to provide vehicles for the county FACT program.
“Fuel is a big expense, even for ourselves,” said Kissell. “It’s something that we have to evaluate everyday and then make necessary adjustments.”
While some speculate a steadier price will be established after the Nov. 2 election takes place, Hardy, meanwhile, believes it might continue for an undetermined period of time.
“Look at the world situation; it’s the oldest story in the book…supply and demand,” he said.