Hidden Casualties Of $4 Gas

Everyday motorists who wince each time they refuel their cars aren't the only ones feeling the pain at the pump. Over the past 12 months, nearly 3,000 gas stations have closed, according to oil-industry trade publication NPN Magazine, as motorists have cut back on driving. When they do refuel, they bypass conveniently located stations to fill up at stations with lower prices, putting some small, independent gas stations out of business.

The major, mounting casualties of rising fuel prices, however, are spread across multiple industries, causing hard times for businesses, their customers and even nonprofits that serve their local communities.

In Depth: Hidden Casualties Of $4 Gas

No place is that reality more evident than among those in the transportation industry, like truck drivers and movers, who use high-priced diesel (now averaging $4.80 a gallon).

"Look at how fast we got here," says Bob Costello, chief economist of the American Trucking Association. "We were caught off guard, and now some will have to close up shop."

Rising Operational Costs
The cost of driving a moving truck has nearly doubled over the past two years to $1.40 a mile, up from 80 cents, purely because of higher diesel prices, says Dan Klein, president of the newly formed National Moving Contractors Association, which represents independent movers. While movers can pass the cost of higher gas prices on to their customers, they are forced to bear the cost of driving "deadhead," meaning with an empty load to pick up the next one.

"The deadhead is what's really hurting us," says Klein.

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The trucking association saw 1,000 fleets go out of business in the first quarter of 2008. Those fleets represent 40,000 trucks, some of which may have been purchased by other trucking companies at bargain prices, says Costello. "Some truckers are leaving companies, and those companies are getting rid of the truck and not replacing the trucker," he adds.

And moving people--rather than objects--is no less difficult a business to be in. The cost of driving a taxi today is 38% higher than it was in 2006, when gas prices averaged $2.91 a gallon. This will slash drivers' net income by $3,825 for 2008, according to the Taxicab, Limousine & Paratransit Association, which represents 125,000 active drivers of taxis, limousines, executive sedans, airport shuttles and other services.

Charities Hurting
The impact of rapidly rising fuel costs has inflicted widespread pain through volunteer programs as well. Many set their budgets for 2008 in the previous year and were unprepared for the unforeseen but sharp increase in gasoline and diesel prices.

More than half (58.3%) of Meals On Wheels programs, which deliver meals to house-bound seniors, say they have lost volunteer drivers due to rising gas prices--the volunteers pay for their own fuel. And things could get worse for those who depend on local volunteer and charity organizations.

"I heard a report of a [volunteer] fire department that shut down in New Jersey because of higher gas prices," says David Finger, director of government relations for the National Volunteer Firefighter Council. "I wouldn't be surprised if there's more than one out there who are in the same situation."

While Finger doesn't expect widespread shutdowns, the problem, he notes, is that volunteers will become more selective about the areas they can serve. The council is seeing some volunteer firefighters responding to fewer emergency calls, especially ones that are 20 miles or more away from their homes. Furthermore, to save on fuel, volunteer firefighters may not be as quick to roll out all the trucks they normally would on every call, Finger explains.