Gas Costs Put Pinch on Buses, Cabs

Rising fuel prices have turned out to be a double-edged sword for local public transit agencies: more cost-conscious people are using public transportation since the Middle East crisis began, but increased passenger revenues are being eaten up by higher fuel costs, officials say.

“Our drivers tell us there has been an increase in express ridership, which could lead us to believe that people who have alternatives are choosing not to pay the higher gas prices,” said Rich Murphy, vice president of operations for San Diego Transit Corp., which operates about 300 buses.

“More riders are always good for public transit,” said Carmen Sandoval, another San Diego Transit official. “But higher fuel costs may force us to retune our fuel budget if the crisis continues.”

San Diego Transit budgeted diesel fuel costs at 68 cents per gallon when the fiscal year began July 1. The agency’s buses burn about 8,000 gallons of fuel daily.

In July, transit officials were paying 50 cents a gallon for diesel, Sandoval said. The cost rose to 95 cents a gallon in August, and the agency has recently been paying 85 cents, she added.

Murphy, like other transit officials, said gasoline prices went up dramatically in September and guessed that the more significant passenger increases occurred then. San Diego Transit’s September passenger figures will not be available until later this month, Murphy said.

Langley Powell, president and general manager of San Diego Trolley, said trolley energy costs have gone up by 33% as of September. However, he attributed most of the energy costs, primarily for electricity to power the trolley, to expanded services and the installation of air conditioning in all cars.

“We’re ratepayers like anyone else. We don’t have any special privileges. But it would be pretty difficult to analyze how much of the new costs are due to higher energy costs,” Powell said.

Trolley ridership is also up. Powell said the number of passengers riding the trolley in August increased by 16% from August, 1989. Much of the rider increase is due to East County extension and the opening of the Bay Side line.

“We’ve had an increase in ridership every month for the past eight years. I think we would’ve had this recent increase with or without the rising gas prices,” Powell said.

In recent weeks, some cab companies and one airport shuttle service have increased fares. Metropolitan Transportation Development Board officials said that 15 firms, which operate about 6% of San Diego’s taxi fleet, have raised fares to $1.80 per mile, the maximum allowed by the board.

Super Shuttle officials, who have seen their fuel costs go up 24% in the past two months, implemented a 50-cent fuel surcharge per passenger--on top of the average fare of $11 per person--on Sept. 21.

Other companies have resisted raising fares for fear of losing passengers.

“We’re competing with the shuttle companies and other cabs. I’ve had several drivers say they would rather eat the increased costs than pass them on to our customers. We don’t want to price ourselves out of the market,” said Yellow Cab official Anthony Palmeri.

While Super Shuttle, the biggest shuttle service in the county, chose to increase fares, other shuttle companies are still standing fast.

Steve Skye, a manager at Coast Shuttle, said his company is paying $2,000 more a month for fuel compared to July, but “we’re not thinking of implementing a fuel surcharge.”

Coast’s fares are slightly higher than those charged by other shuttle companies. The company charges $16 for two persons for a trip from La Jolla to the airport and $44 for a family of four from Escondido to the airport.

“We went round and round on this, whether to do it or not. In the end, we had to implement a fuel surcharge,” said Roselyn Smith, Super Shuttle’s vice president of communications. “Our cost for fuel went up about 24% in less than 60 days. We’re forced to buy at the pump, like everybody else.”

According to Smith, the company had budgeted 12% of its gross revenue for fuel costs. Currently, gasoline expenses account for between 18% and 20% of the company’s gross revenues, she said.

Super Shuttle officials said their riders have increased from about 1,000 a day in July to about 1,200 riders per day in September. Smith attributed the increase in part to drivers who are trying to conserve gasoline.

“But that’s still not enough to offset our fuel bill,” she said.

Local cab companies say they have generally not benefitted from the gas crisis and cab drivers are being hit hard in the pocketbook.

“The gas companies will use any excuse to raise gas prices. What’s going to happen if they really start shooting over there?” said Alfred Hueso, an owner of the family run USA Cab.

MTDB officials said about 95% of San Diego’s cabs are leased to drivers by cab owners. Lease drivers are required to pay for most of the cab’s operating costs, including gasoline.

According to Hueso, his company’s drivers are paying about $100 a month more for gasoline, for an average of $350, since gas prices went up.

“It’s awful. The gas bill keeps going up but we haven’t necessarily seen an increase in passengers. . . . We thought this crisis was going to be temporary, but things aren’t cooling down. It might get worse,” Hueso said.

Yellow Cab’s Palmeri said he is having trouble attracting lease drives because of the higher fuel costs.

“I’ve noticed a decrease in the number of drivers who want to lease from us,” he said.

Yellow Cab buys gasoline from a distributor and turns around and sells it to its drivers. The company has been “eating a nickel a gallon” in the price it charges drivers, Palmeri added.