The Rising Cost of Energy


by


Rebecca Castillo

Oil

4.29.05

NARR: President Bush told the media yesterday that the US will encourage oil producing nations to maximize their oil production. He acknowledged that Americans and small businesses were being affected by the high cost of gasoline. But he made one promise.

TAPE: BUSH (:08) Here at home we will protect consumers. There will be no price gauging at gas pumps in America.

NARR: In New York City, a gallon of gas costs two dollars and twenty cents. That high price is directly related to the price of crude oil. President Bush said he was confident his could reduce the country's dependence on foreign oil. He said one way would be the passage of his energy bill.

NARR: But Americans across the country are still confronting the higher gas prices . Most New Yorkers wouldn't know it since they visit the subway platform more often than the gas pump. But they will feel it though other costs.

NARR: One way might be additional fees for services such as moving.

Sound: movers packing a van.

NARR: Nick Zuhuski, owner of Despatch Moving Company, a subsiderary of American Van Movers says that his small six-truck company passes the increase cost of fuel right onto customers.

TAPE: ZUHUSKi: It's starting to affect the prices for local moving because the prices have gone up so much from last summer. How we charge on local move is based on hourly rates but now the first time we have what I refer to this charge a toll/fuel surcharge.

NARR: A local move is considered anything within 75 mile radius. Aside from the moving cost, customers will have to brace for an additional one dollar to one twenty-five per mile. Zuhuski said that the extra fees vary depending on the current price of fuel. He doesn't foresee that fee going away in the near future.

NARR: Zuhusky represents the very group of people that are most affected by the rising costs of fuel...small businesses.

NARR: But he has the luxury of passing those costs onto the customer. Some small businesses can't make that choice.

Sound: ice cream truck

NARR: Milton Alvarez, is one of those owners. He has owned his Ice Cream Parlor on Wheels for twenty years. He says the economy is booming for everyone except him. He should be getting excited for the approach of his busy season but the higher cost of diesel and gas is already affecting his profits.

TAPE: MILTON (:) Diesel is two seventy nine a gallon. To fill this up is twenty five in diesel along and twenty dollars in gas everyday. I'm barely surviving, I'm ready to like go out of business.

NARR: His attitude is bleak because he says he can't pass the costs on to his customers. No one would pay three dollars for an ice cream softee. So he will eat the higher cost of fuel so he can keep his customers.

NARR: For now there seems to be no answer for small business owners like Alvarez.

I'm Rebecca Castillo, Columbia Radio News