$3.60: A new record for gas Deliverers, truckers struggle to pay costs

By Charles Frost
Staff writer

May 02, 2008 01:34 am

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NEWBURYPORT — As gas prices broke a state record at $3.60 per gallon yesterday, many drivers have begun to alter the way they travel.

Be it car pooling, riding a bicycle, walking or taking another form of transportation, many drivers are conserving.

But then there are those who can't. Local businesses and employees who rely on gas and diesel to do their jobs are now feeling the pinch of record-breaking fuel prices on their profits.

High gas prices have had an effect on drivers' profits at Port Taxi in Newburyport, which has led the company to consider a 10 percent surcharge to help offset its drivers' costs for gas.

"A lot of drivers are feeling it in a major way," Port Taxi dispatcher Tina Boucher said. "Some drivers have said they may have to go elsewhere if we don't increase our rates. It's rough, really rough."

The burden is placed on drivers because tips typically pay for the gas that they use each day, but tips generally don't increase as the cost of fuel does. It takes about $40 to fill their tanks each day, and on a good day, they can earn about $200, Boucher said. But that money is then split with the taxicab company, then the cost of gas is removed, which leaves drivers with an average profit of $60 to $80 on a busy day. On a slow day, drivers can earn even less while still working 10- to 12-hour shifts, Boucher said.

Another factor is that the city of Newburyport sets the price ceiling for taxicab rates within the city limits, and those haven't increased since 2005. A ride from State Street to the Port Plaza costs $4.80, but that leaves the driver with only $2.40 to pay for the gas he used to get to the customer and then drop him off at his destination, with the remainder left for profit. Currently the rate per mile outside of Newburyport sits at $2.

"It's not really worth it, especially if they don't tip," Boucher said.

Businesses that use delivery drivers are also feeling the effects of record high gas prices, which often results in an increase in delivery charges.

Saracy's Flower Shop in Newburyport raised its delivery prices by $1 last month as fuel prices climbed above $3 a gallon. Now it's $7 to deliver within Newburyport and $8.50 for Amesbury, Newbury, Salisbury and West Newbury.

"Deliveries is a crapshoot," manager Bob Winnerman said. "We are different than having food delivered. Food delivery knows that people are home. People are not always there when we try to deliver. Sometimes we have to go back two or three times."

Delivery drivers at Pizza Factory II in Newburyport pay for their own gas, owner Andreas Psilifonis said.

"The prices are really high now; it's outrageous," Psilifonis said. "It's a big problem for (drivers)."

He said he may have to give the drivers money each week to help pay for gas or give them a pay raise.

Trucks that use diesel, like the eight tow trucks at Simmie's Garage, are facing even larger fuel costs, as diesel prices continue to soar above $4 a gallon.

"It's definitely affecting the towing business," owner Holly Janvrin said. "Once upon a time, the fuel bill was reasonable, but our fuel cost has probably tripled per week. We never thought fuel would cost more than wages for employees."

What has helped the business is the opportunity to charge a fuel surcharge on local and state police calls. Currently it is allowed to charge 6 percent of the total tow price, which brings in between $4.75 and $6 each time.

But that surcharge doesn't apply to the price of a regular tow, something the company hopes it won't have to increase.

"We are hoping we don't have to increase the price, especially not to the community and the surrounding areas," Janvrin said. "We are fortunate that we are a major AAA facility in this area."

But AAA can also create a problem, Janvrin said. The company actually loses money on tows that go more than 25 miles because AAA charges a rate that thus far hasn't been increased. Still, Janvrin said the company tries not to turn down towing opportunities.

Jane Volpone, owner of Volpone Towing Service in Newburyport, said there is only one thing her company can do with the rising fuel costs, "eat them."

"We just hope to try and keep prices down," said Volpone, who hasn't increased towing prices yet. "It's coming out of the bottom line. There comes a point when there is no bottom line left."

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