Economic News

Gas prices rising, people’s funds not

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Lately, it seems when drivers in Valley Stream choose to fill their car tanks with gasoline it isn’t long before their wallets are on “E.”

Gas prices have steadily risen since the start of 2012; in New York state the average price of a gallon of regular gasoline was $3.98 on Monday, nearly 30 cents more than the national average. The surge in fuel costs has left some local businesses to foot a bigger bill with less people requiring their services to help offset the mounting costs.

Jackie and Joe Haslbauer own Central Auto Collision on Rockaway Avenue and said business has significantly dropped in recent weeks. “I would say February was definitely a slow month,” Jackie said. “It hasn’t been this slow in quite a while. And I would say confidently that it has affected a lot of the other shops too because when the people who deliver the parts come, they’ll say it’s slow everywhere.”

Another business that has experienced a recent reduction in its clientele is Valley Stream Taxi. “We’re probably down about 25 percent because people aren’t traveling as much as they used to because the prices that we have to charge are astronomical,” one Valley Stream Taxi official said.

In order for the taxi service to raise its prices, the Valley Stream Village Board must approve the increase. The taxi official said there was one raise in recent months and there may be another one soon.

The taxi official also said that the number of employees has been reduced as well to combat the increased costs. This week, Valley Stream Taxi implemented a new practice where the company helps pay for fuel costs. In the past, drivers paid for the total amount of gas they used, but since fuel prices have soared the company is now picking up a portion of the tab as well.

At Central Auto Collision, the staff is made up of four people and no one has lost their job, but the Haslbauers said the rise in fuel costs has a trickle down effect on a lot of businesses.

“It goes, ‘I’m not busy, then the guy selling me parts isn’t busy, and then the guy selling me materials isn’t busy,’” Joe said. “If all of the repair shops aren’t busy, then in turn all of the suppliers aren’t going to be busy.”

Anthony Mezzatesta, a director at Valley Stream Ford Lincoln on West Merrick Road, said he has noticed a dip in the amount of service traffic at the dealership, but the business itself is still doing fine. “I don’t know if it’s affecting our business because cars are needed, so people drive them everyday,” Mezzatesta said of the rise in gas prices. “You could have a person looking for a fuel-efficient car or someone who doesn’t care about gas prices.”

Mezzatesta added that he has noticed a trend of customers buying cars that are good on gas. “Ford does make a lot of fuel-efficient cars and that’s to our benefit,” he said. “People do buy them.”

Joe said he cannot raise his prices at Central Auto Collision to offset the drop in business because his field of work is too competitive. And Jackie added that bigger companies have less of a problem with the rising gas costs, but, “in a small business, it can close you out.”

Valley Stream resident Michael LoCascio said he did not drive his car for three days in response to the gas prices. “That is not me,” LoCascio said of his recent driving habits. “I am usually out doing things and going places. Prices are not going to go down soon enough for me.”