Passing the Buck … Literally
Friday, May 30th, 2008Posted by Fred Jandt
Editor, Mass Transit magazine
The much ballyhooed gas crunch has hit.
As Memorial Day weekend came and went, I stayed at home this year, grilling out with my family rather than spending time traveling anywhere on the prototypical family vacation. What’s interesting is that, while travel numbers did drop for the holiday weekend, they didn’t drop precipitously.
Americans are stubborn. They aren’t going to let $4-a-gallon gas stop them from getting where they are going. And really, if you’ve become used to gas at $3.80 to $3.90, what is $4? That’s the thing. The gas prices are skyrocketing, sure, but it’s been a slow, steady increase, not a huge jump overnight. People are being conditioned to accept the gas prices as they climb upwards, not being availed with an overnight sticker shock as they head to work the next day.
Now some people are savvy enough to do the math and realize just what they are losing with the higher gas prices and are taking transit. More and more people are using their local transit systems to get where they want to go and that couldn’t be better for transit systems. Except for the fact that those same transit systems with surging ridership are being faced with diesel prices heading toward $5 a gallon.
Unlike the average commuter who can turn to transit when gas prices climb, the transit authority is stuck between a rock and a hard place. It can either come up with new ways of raising the money to pay for this increase in fuel costs, raid auxiliary funds or cut service — of course, surging ridership while cutting ridership is a potential recipe for disaster.
Utah Transit Authority is looking at raising its fares to offset the soaring fuel costs. Its board passed a fuel surcharge this week, increasing its fares by 25 cents this July and by another 50 cents next winter should fuel costs not drop. You may not have noticed it, but taxis have been doing this for some time now.
TriMet in Portland proposed a 20- to 25-cent fare increase to its board because of its fuel cost increases. TriMet’s fuel costs have almost doubled in the last year. According to system head Fred Hansen, the agency tried everything to offset the fuel costs, including eliminating 18 positions, to no avail.
And these agencies aren’t alone. Denver’s RTD cut frequency on low-performing bus routes and on one of its light-rail lines. Right now the agency isn’t planning a fuel surcharge, but it isn’t ruling it out either.
Of course, it’s inevitable that fare increases will be used as another round of ammunition against transit agencies — not figuring that gas prices affect everyone, not just commuters.
Thanks for reading the MT Position updated every Friday,
