Local transit companies add surcharges (Burlington Free Press)
By Dan McLean
As gas and diesel prices skyrocket, fuel surcharges are becoming increasing common in Vermont.
Several Burlington taxi companies have increased fuel surcharges and the Lake Champlain Transportation Co., which operates regular ferry service on Lake Champlain, will introduce its own surcharge May 1.
The strain on Vermonters and record profits of the U.S. oil industry has irked Sen. Bernie Sanders, I-Vt., prompting him to develop a series of amendments he is considering adding to legislation he said is being drafted to deal with rising fuel prices.
Paul Robar, president of Burlington's Benways Transportation and Morf Transit, said he expects gasoline to rise to $3.75 a gallon in Vermont before leveling off.
"Oil is the blood of our company," he said. "The unfortunate part is: we can't live without it. That's for sure."
Benways first instituted a fuel surcharge about one year ago and has been tweaking it ever since. Initially, he added a 50-cent flat surcharge, but changed that to a 10 percent surcharge on the trip's fare. Rising fuel costs are forcing another increase next month, he said.
It's not just the passengers that are harmed by rising fares, he said. Tips for the drivers have fallen, Robar said.
Regular gasoline in Vermont set another record price Friday: $3.51 a gallon, according AAA's Daily Fuel Gauge; diesel cost $4.41 a gallon.
Benways is not alone.
Yellow Cab in Burlington increased its fuel surcharge from $1.50 to $2 on April 18, general manager Larry Bushey Jr. said. "To stay open, we have to make it up somehow," he said, adding most customers are "pretty understanding."
Sanders -- who called increasing fuel costs "a national crisis" -- outlined roughly a half-dozen ideas to help get fuel prices under control Friday.
Three of his ideas, he said, are being advanced by Senate Democrats, as part of a greater legislative package. Those include:
Closing the "Enron loophole" to minimize speculative buying of oil by regulating the energy markets.
Stopping the addition of oil to the strategic petroleum reserve.
Filing a complaint with the World Trade Organization to seek the breakup of the Organization of Petroleum Exporting Countries.
Sanders said he is considering making the following amendments, some of which he said Democratic senators have found to be "fairly radical" :
Giving the president the authority to impose fuel price caps in the event of market manipulation.
Imposing a windfall profits tax on the oil and gas industry.
"A windfall profits tax says we are watching them. They cannot rip off the American people," Sanders said.
John Felmy, chief economist of the American Petroleum Institute, which represents the oil and gas industry, said Sanders' recommendations are "unlikely to have a significant impact" on fuel prices because the price at the pump is set by supply and demand.
"Price caps. Good grief!," Felmy said. "We have tried price controls since Roman times. They don't work."
"These guys are doing anything they want and I think the time is long overdue for Washington to stand up to them," Sanders said of Congress taking on the oil industry.
Sen. Patrick Leahy's office said fuel price issues are being addressed, but no legislation has been finalized and aides declined to comment on specific provisions mentioned by Sanders.
Henry Sorrell, vice president and treasurer of Lake Champlain Transit Co., said assumptions made about diesel costs in January are now completely wrong -- forcing a fuel surcharge.
In January, the ferry company paid $2.88 a gallon. The price Friday was $3.70, he said, noting ferry fuel is a different diesel than its on-road version and has a different tax structure.
"The plan we had in January is all blown out of the water," he said, noting the surcharge will likely increase prices slightly more than 3 percent.
""The solution is complicated. There is not one magic bullet. But we have a national emergency and we have to address it," Sanders said.
