Saturday, May 31, 2008

Gas Price Ramifications

High gas prices are pushing more people onto buses and subways, straining transit agencies trying to meet the demand. Like other consumers, the agencies are also paying more for fuel — 44% more this year than last, according to a survey of 96 transit agencies to be released Friday by the American Public Transportation Association (APTA). That double hit means bus and train operators are raising fares, cutting services and delaying improvements. Almost half of bus operators and more than two-thirds of rail operators have increased fares. About a fifth are cutting service. "The difficulty of high gas prices is that it is a dual-edged sword," association President William Millar says. "It is bringing more ridership. … Unfortunately, transit agencies are huge users of petroleum-based fuel."

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