Lebanon Express

Gas prices: Beyond the pump

By Rachel Beck,Lebanon Express writer | Posted: Wednesday, July 23, 2008 12:00 am

High gas prices don't just hurt consumers at the pump. The impact of the rising cost of fuel extends to other areas of life, from food sources to recreation and public safety.

Agriculture

"Energy costs as a whole are a huge input costs to agriculture, which are reflected in rising prices and lower economic viability in agriculture," said Oregon Farm Bureau president Barry Bushue.

Bushue, who farms fruits and runs an ornamental nursery outside of Portland, said farmers feel the pinch from fuel costs, mainly diesel, in many areas.

Transporting food, running farm equipment, even driving to town to get necessary parts - it all adds up.

"We're very, very energy dependent," he said.

That doesn't change when sales are down, as they are now, he said.

"Rising prices of commodities do not keep up with significantly increased prices in inputs," he said.

He's seen the effects first-hand.

"Our fuel bill has increased significantly," he said. "In the nursery business, with the economy in a downturn, sales are depressed but input costs remain the same despite sales.

"We've got crops here we've got to maintain … whether sales are high or low."

Bushue doesn't believe farmers will see the problem alleviated until Congress adopts a comprehensive energy policy.

"Unfortunately, unless we look at the traditional and the non-traditional (fuel sources), we are not going to be able to conquer dependence," he said.

Recreation

With fuel prices making long car trips economically difficult, and airlines raising ticket prices and even adding fuel surcharges, many would-be travelers aren't venturing too far.

Lebanon's Willamette Speedway is a hub of Northwest car racing. High costs of fuel have impacted the track in good ways and bad, leaving the business about even - for now.

"Typically in the past, when gas prices have gone up, it has put more people in the seats because they don't do a lot of things like going to the mountains, the coast, that type of stuff," said track operator Bill Arnold. "It really hasn't affected the stands all that much. I know that it's a huge burden on the drivers."

Race cars use higher octane fuel than other vehicles, and some even use aviation fuel, all of which is more expensive than what is found at a regular gas station.

Drivers in the Northwest may travel to tracks in different states to compete, but now some are staying closer to home.

"Some of the racers that were from really far away have, I assume, either chose to quit or maybe race at a track closer to them," Arnold said. "That's totally understandable."

But Willamette Speedway didn't want fans to be disappointed if there were fewer racers than usual, so Arnold added Modifieds to the schedule this year.

"I kind of had a suspicion that that {increased gas prices} would probably happen," Arnold said of what prompted the change. "Our fans are used to seeing 100-plus cars."

The addition of Modifieds has kept the car count about the same.

Even with attendance up and cars steady, the track is impacted by fuel prices.

"It's also a huge burden on us, all of our equipment is diesel and gas too," Arnold said. That equipment includes two road graders, two tractors and two water trucks. During the racing season, they are constantly in use. Wet spring weather means the water trucks don't have to operate as much, but the height of summer means they have to be out frequently.

"This time of year they work hard all week long," Arnold said.

He's not sure what will happen if gas climbs another dollar or two per gallon.

"We're gonna continue to keep the doors open, and try to work through this," he said. "I don't think anybody knows which way it's going to go. I'm sure it's affecting every business out there."

Public safety agencies

Law enforcement and emergency services aren't immune either. The Lebanon Fire District budgeted $20,200 for fuel for fire vehicles this fiscal year, said finance director Chuck Begley, and $22,600 for medic units. That's up from $13,200 for fire vehicles and $20,600 for medic units in the previous year.

"We're trying to keep up with it, but it's going faster than what our budgets are," Begley said.

The LFD buys fuel and has a fueling station that is used by the city of Lebanon, the fire district, and the Lebanon School District. Each organization owns one-third of the facility, and Begley charges them for reimbursement of fuel costs.

Though Begley purchases fuel in large quantities, and at a lower cost than consumer prices, public safety vehicles eat it up.

"It's about $1,800 to $1,900 a month just for diesel for medic units," Begley said.

LFD adopts a budget in June for the next fiscal year. There's enough money for fuel, but it might take some shuffling, for instance by taking money from another area that has a surplus. If things get really tight, there is a contingency fund the district could dip into. It hasn't had to do that specifically for fuel yet, Begley said.

Will this year's budget stretch far enough?

"It's too soon to tell," Begley said.

Fire and medic vehicles don't get great mileage; about 12 or 13 miles per gallon for ambulances and less than 10 mpg for fire trucks (highway). Plus, all vehicles spend a fair amount of time idling on scene, so that the water can pump or the lights can flash.

In short, Begley said, they're struggling too.

"The cost of fuel is hurting us just as much as it hurts every individual out there," he said.

It's a similar story for the Lebanon Police Department.

LPD has $48,800 budgeted for fuel this fiscal year. Last year, the department actually spent $31,340; the year before that, $23,513.

Captain Mike Schulte said they're projecting about $58,000 for next year's budget.

"It hurts," he said. "But it's a necessary evil. We gotta have it."

Police vehicles often remain on even when they're not moving so that the electronic equipment can work. If the battery dies, the unit is no longer able to respond.

Police cars get better mileage than fire trucks or ambulances, but are still somewhere between 12 to 16 miles per gallon, all of which is city driving, Schulte said.

The general public doesn't need to worry about their safety yet. Fuel prices haven't impacted patrols, Schulte said, but they may eventually. LPD doesn't have officers on bicycles or on foot because they can't carry as much equipment, and it takes them much longer to respond to calls.

The department has noticed more fuel theft, like gas siphoned out of vehicles.

"In the last six months we seen a considerable increase in those types of activities," Schulte said. "[Gas is] a valuable commodity."

It's a tough crime for police. For one thing, it's hard to catch the thief in the act.

"If you do, generally what you find is a hose hanging out of the side of the car, maybe a gas can left behind and no one around," Schulte said.

And even if gas is "found," it's basically impossible to prove it was stolen.

"Once they're gone with it, how do you identify fuel?" Schulte asked.

It's an ongoing battle with no end in sight.

"I wish there was a better way to get ourselves around," he said. "I just don't know what that answer is at this time. Maybe 10 years down the road they'll have some cleaner energy source at a lower price. But it isn't going to happen overnight."