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Gas Prices Pinch Postal Service

Local Businesses Also Affected

POSTED: 6:44 pm PST March 16, 2005
UPDATED: 8:05 pm PST March 16, 2005

Skyrocketing gas prices are putting the pinch on the local postal service district and the high pump prices could soon be passed on to consumers, NBC 7/39 reported.

The San Diego postal service is spending $184,000 a month on gas, NBC 7/39 reported. That number is up 22 percent from last year.

"(If) fuel goes up a penny, it adds a $1 million to our overall costs per year," said postal worker Mike Cannone. "It is really, really significant."

Since the postal service cannot scale back deliveries, it is trying to cut costs using electric vehicles and trucks that run on natural gas. Still, officials admit that continued high prices at the pump could play a role in raising the price of stamps.

The cost increases have also been a nightmare for local airport shuttle services. Jacob Dayeh, a driver for Cloud Nine, says it has been hard to make a living recently. His daily gas bill is $75.

"There's less money to take home," Dayeh said. "I have a wife and three kids."

Cloud Nine's president says the drivers are doing everything they can to save on gas, including avoiding use of the air conditioning and keeping tires inflated. So far, the company has not raised its rates, but the situation is becoming dire.

"You know at some point, the straw breaks the camel's back and you pass the cost along," said Cloud Nine President John Hawkins. "You hope that the consumer understands and still patronizes your service."

The average price of gasoline in February was $2.13. The average March price is $2.34, a 21 percent increase. Consumer groups say the price could reach $3 by this summer.

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