Impact Of Rising Gas Prices On Consumers

CHICAGO (CBS) – If you’ve filled up your car recently, you already know the price of gas is going up. The national average for a gallon of regular is $3.07. Here in Chicago, that same gallon costs $3.30. That’s up 22 percent since a month ago. And prices are expected to keep climbing.

As CBS 2’s Dorothy Tucker reports, consumers will feel this price hike in more places than just the pump.

It’s now $1 surcharge for every cab ride, money cab drivers like Wakeel Jamla say they need to offset rising gas prices. Jamla says he pays an extra $7 or $8 extra per day for gas.

Taxis started charging the $1 fuel surcharge on Tuesday because gas prices in Chicago topped $3.30.

Other companies, like FedEx and UPS, tacked on the fuel surcharge with the new year. You’ll now pay 5 to 10 percent more to ship packages.

And you’ll pay more to fly.

“The airlines are starting to put on $10 surcharge to pay for oil,” said Morningstar Economist Bob Johnson.

Johnson says other industries tacking on fuel surcharges include freight companies, trucking companies that deliver everything from food to products; which means business owners like Norm Dinkel pay more.

“The products that we’re receiving: sugar, flour, eggs, chocolate chips, all those distributors have now put on a delivery surcharge because of gas prices,” said Dinkel.

For Dinkel, he says those surcharges add up to nearly $200 a month. To offset the cost, he’ll raise prices on his website orders, but he won’t raise prices in the store. Instead, he’ll make changes.

“Instead of having weekly deliveries, maybe have a monthly delivery so we don’t have to spend money on that surcharge,” said Dinkel.

Two other agencies that use a lot of gas, but aren’t expected to add on a fuel surcharge, are Metra and the CTA. Experts say both are subsidized by tax dollars and don’t make sudden changes because of the cost of fuel.

Comments

More From CBS Chicago

Super Bowl 50 Coverage
Daily Weather Reports Delivered To You!SIGN UP NOW: Get daily weather reports every morning from meteorologist Steve Baskerville!

Listen Live