Story Published:
Nov 20, 2008 at 6:52 PM CST
Story Updated:
Nov 20, 2008 at 6:52 PM CST
SPRINGFIELD -- Even though fuel prices are dropping daily, the decline is having little impact on prices in stores and restaurants. It made sense to many retailers to expect a fuel surcharge when the price per gallon was more than $4 a gallon but many wonder why that expense is still being charged.
It comes down to a few cents per mile that a carrier travels with goods in tow but those few cents can add up quickly. Those paying the bills want to know why they're still adding up even though the price of fuel is down.
Fruits, vegetables, boxed goods -- you name it, it probably arrived at a grocery store on a truck and, logically, one that runs on fuel.
"Obviously, the increase in fuel is going to be passed along at some point,” said Pat Leonard of Prime trucking.
For many, "some point" came in the last year when the price per gallon of diesel closed in on $5 a gallon.
Grocer Bill Smillie is familiar with the fuel surcharge.
"Our major supplier, Associated Grocers, has a policy of putting a surcharge on when the price goes over a certain level,” said Smillie.
In the last several months, a number of other suppliers also started adding those dimes, nickels, and dollars.
"When the beer distributor or bread company and linen supply started adding those charges, it all stuck out,” said Smillie.
And even now that diesel runs closer to $2.50 a gallon, "I haven't seen any of them go away,” said Smillie.
Some of that depends on the company. At Prime, headquartered in Springfield, fuel surcharges have been around for years.
"They probably came into play when gas was $1.10 to $1.20,” said Leonard.
They vary according to a formula. For every nickel the price per gallon goes up or down, the trucker charges a penny more or less per mile of travel.
But other companies negotiate length-of-time contracts, so the price they charge could be the same today as it was months ago.
Regardless of how it gets to the bottom of the bill, though, it's an added frustration for the person who has to pay it.
"It would be like me trying to add a 10-cent charge for every paper sack you took out of my store. You wouldn't like it, and we don't like it,” said Smillie.
A number of variable surcharges have gone down. At Prime, they said last January or February that they were charging an additional 70 cents per mile of travel. Now that's down to 34 to 38 cents extra per mile.
Some consumers see shipping charges when they buy or send things over the holidays. One retailer says she sees a line item shipping surcharge when she ships from her business to a home. However, most people just pay more to mail goods because that surcharge is wrapped up in the overall cost.
On another note, a number of major retailers are offering free shipping this year. They're swallowing that cost to help sell more goods.