Fear of high gas prices forces businesses to prepare for worst - KWWL - Eastern Iowa Breaking News, Weather, Closings

Fear of high gas prices forces local bus company to prepare for the worst

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WATERLOO (KWWL) -

Rising gas prices impacts everyone of us, but nobody feels it more in their bottom line than companies where driving is their business.

MET Transit in Waterloo has 43 vehicles and for just two and half weeks it takes 7300 gallons of gasoline to keep them all moving. The General Manager of MET Transit, Mark Little, says it costs a lot to keep all those vehicles running.

"Anywhere from around $22,000 to $25,000 is what it's been averaging lately," said Little.

Little says if analysts are correct and prices reach new heights, they may have to wait on purchasing new vehicles and other improvements.

"In 2008 when fuel prices spiked we were able to absorb that within our budget, this year it maybe difficult, but were looking at every project we have and just putting it on hold until we find out what's going to happen," said Little.

Local financial experts say demand, refinery issues, shipping costs, taxes, and even problems around the world play a part in how much you pay for gas. They also say no one can really predict where prices will be going.

"Many of the folks at OPEC's board don't know why oil prices go up and down and they try to control and they're not able to," said financial advisor, Dave Becker.

As for Little, he says if prices dramatically increase, riders may feel the impact.

"As a last resort would be to increase fares or decrease service we are a firm believer that the service we have in the community now is sufficient, but any reduction would have an impact in our riders," said Little.

In 2008, when gas prices spiked MET Transit saw their ridership double, but the amount of money from fare still did not cover the increased price in gas.

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