Silicon Valley Motorists begin to feel squeezed

greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

[Fair Use: For Education and Research Purpose Only]

Published Monday, March 13, 2000, in the San Jose Mercury News Motorists begin to feel squeezed Some driving less as gas prices skyrocket

BY GARY RICHARDS Mercury News Staff Writer

As gas prices rocket relentlessly toward two bucks a gallon, some Silicon Valley motorists are doing more than raging against big oil. They are changing how they drive.

Terry Brewster now carpools twice a week from South San Jose to Menlo Park. Cathy Denton no longer makes a leisurely 120-mile round trip to Monterey to take in the ocean. And Jacque Gulan is combining errands to the grocery store, bank and gas station into one trip.

Of course, not everyone will be cutting back. Some energy experts believe that in a valley awash in money, many people will not factor in higher gas costs when deciding to make a trip.

Still, with pump prices near a record-setting $2 a gallon for the first time, others are doing more than just griping. In a sampling of about 40 motorists, nearly half said it was time to act differently. During past price spikes, in contrast, many motorists howled but few said the increases would force them to change.

``Two dollars can have a big impact psychologically on people,'' said Paul Moreno, who tracks gas prices for the California State Automobile Association. ``Just as when gas fell under a buck gallon, it had a big impact. People never gave driving a thought.

``Double the price -- especially when you've never seen two dollars for a gallon before -- and some people will say enough.''

Higher gas prices have an emotional hold on drivers that analysts say is completely out of whack with how much extra it really does cost. A trip to Lake Tahoe at $2 a gallon will cost about $8 more for the owner of a Honda Accord, and $16 for the owner of an expensive sport-utility vehicle, than it did a few months ago.

But some drivers detest paying more for gas, and that has led to change. The most common: Cover several errands with one trip. Instead of the wife going one way and the husband another, ride together. This may seem insignificant especially when SUV purchases are still humming, but consumer advocates say it's a wonderful way to reduce the demand on gas at a time when supplies are tight. Gas prices have taken off because OPEC nations have reduced production.

Or cut back on trips you don't need to make. Denton, a San Jose mother who loves to jump into her Ford Explorer and head to scenic areas like Santa Cruz, Monterey or Mount Hamilton with her 12-year-old son, Mark, now thinks twice.

``We're driving less and staying home more,'' she said. ``I just love to drive, so these high prices are very disappointing. Getting 12 miles per gallon adds up at these prices.''

Or share a ride to the office. Brewster commutes 70 miles round trip each day, and as his fuel bill topped $150 a month, he decided it was better to leave earlier for work and join a carpool a couple days a week.

``I now even carpool when I go golfing,'' said Brewster, who drives a 1988 Ford Ranger. ``And no unnecessary driving. It's just too expensive.''

Brewster's Ranger has racked up plenty of miles and he debated trading it in for an Explorer. But poor mileage convinced him that this is not the time to buy an SUV.

There are some signs that these conscientious drivers are exceptions.

Car dealers say SUV sales remain brisk. Light-truck sales rose more than 10 percent nationally from January to February. Frontier Ford on Stevens Creek Boulevard says it sells 100 Expeditions and Explorers each month, a pace that shows no signs of tapering.

``People are still coming in and buying big cars and trucks like crazy,'' said Bill Light, fleet manager at Frontier. ``Our sales are booming. No one says anything about gas prices.''

Tony Banwait of San Jose is looking for an SUV, saying his ``Nissan Quest says I'm a family man. An SUV says something more macho.''

And the cost of gas? No problem. ``I grew up in London where I paid $5 a gallon, so $2 is no big deal,'' he said.

Claudia Chandler of the state Energy Commission also doubts that motorists are ready to drive less, take mass transit or trade in the SUV for a compact getting 30 mpg.

``We would love to see people change their behavior even moderately,'' she said. ``When gas is cheap, people take trips for everything. They go to the grocery store, then back home. To Little League, then back home.

``We see the car as an extension of ourselves. For us to behave differently, gas is going to have to be a little bit higher, I'm afraid.''

Probably up at least another dollar a gallon, said Norm Lenhart of Off-road.com.

``People don't want to drive a Yugo, and mothers don't feel their kids are safe in micro cars, so people will continue to deal with higher gas prices if necessary,'' said Lenhart, editor of the Web site for driving enthusiasts. ``Gas would have to hit well in excess of $3 a gallon before people would consider getting into smaller vehicles.''

But there's little doubt that some drivers are feeling the pinch. Beth Chalmers of Campbell was almost out of gas when she pulled into a Shell station along Meridian Avenue. Price: $1.81 for self-served unleaded.

Her bill: $57.48 for a little more than 31 gallons to fill.

Motorists flocked to the Arco station at Branham Lane and Jarvis Avenue in South San Jose last week, with lines several cars deep. The reason: It sells gas as cheap as anyplace, $1.68 this day and about 19 cents a gallon cheaper than a Chevron down the street.

Station manager Bill Nguyen said he's been swamped since prices took off, selling about 5,000 more gallons of gas per day than a few weeks ago. That lured Gap Lupo of San Jose to this station, prepping his Fleetwood RV for a trip to Palm Springs, Arizona and Mexico. He eased the huge motor home to the pump, walked up to Nguyen behind the inside counter, saying: ``I'm filling it up.''

And then, for half a tank of gas, he handed Nguyen $110.

http://www.sjmercury.com/premium/local/docs/gas13.htm



-- Martin Thompson (mthom1927@aol.com), March 14, 2000


Moderation questions? read the FAQ