MARION, Ind. – High gasoline prices in Indiana are giving some motorists blisters as they opt to leave their vehicles parked in favor of walking, reports the Marion Chronicle Tribune.
“I think it's crazy because it's $3.00 per gallon,” a Marion resident told the newspaper, adding, “I've been walking to work and walking everywhere else just to save gas. I walk from one side of town to the other (to get to work).”
Another resident commented that he began carpooling to work and “walking everywhere else” to save on gasoline. “I don't like it; I'll certainly be driving a lot less,” he said.
Meanwhile, even though some Marion residents may be walking instead of driving, the newspaper writes that experts say “part of the reason gas prices keep climbing” is because motorists aren’t “cutting back enough.”
“Everybody thought we'd hit a price that would create permanent demand destruction. But demand for gasoline is rising,” Alaron Trading Corp. analyst Phil Flynn told the newspaper, adding, “Once again the American public has shown its ability to get over paying high prices for gasoline.”
Indiana Petroleum Marketers and Convenience Store Association Executive Director Scot Imus told the newspaper that high gasoline prices also mean “unpleasant times” for retailers.
“It is difficult when gas prices go so high,” said Imus, adding, “Retailers' margins actually evaporate; it's a very competitive business, and nobody wants to be the first on the street to pass along a price increase. So margins get depressed that way.”
Imus also commented that credit card transaction fees are cutting into retailers’ profits.
“When prices go higher, then the fee goes higher because it's based on a percentage of the sale,” said Imus, noting that 70 percent to 75 percent of transactions are done on a credit card. “And if the prices go higher, then the number of (credit) transactions go up because people aren't carrying that much cash.”
Imus noted that gasoline theft also increases with high gasoline prices, which is leading more retailers to switch to prepay at the pump.