Gas prices fall in South Florida, but extra charges remain
Despite a significant drop in gas prices, many businesses are still adding fuel surcharges to customers’ bills.
Gas prices have plummeted to almost a two-year low in South Florida, but many companies are still tacking fuel surcharges onto their customers’ bills.
Business owners say they’re sticking with the extra charges, for now, to recoup money lost in the recent economic downturn and because they’re afraid prices at the pump won’t stay so low.
Leonard S. Stern Plumbing in Coral Gables raised its fuel surcharge to $8 from $5 this summer to cope with soaring costs. As of Wednesday, the surcharge was likely to ‘’stay status quo,” manager Howard Stamen said.
”We’re going to reevaluate things this week, but we’re already starting to notice gas stations raising their prices, and we think that might continue now that the election is over,” Stamen said.
South Florida gas prices are at their lowest point since February 2007, according to AAA.
A gallon of regular gas averaged $2.27 in Broward and $2.34 in Miami-Dade on Thursday, down considerably from respective highs of $4.15 and $4.16 in July. Diesel gas, the fuel of choice for many delivery companies that use trucks, was at $3.15 a gallon in Broward and $3.11 in Miami-Dade, down from peaks of $4.99 and $4.93 this summer.
Despite the price drops, fuel surcharges remain.
Customers who order a pizza delivery from The Big Cheese in South Miami will pay a $2.50 charge, up from $2 a year ago. The money goes directly to the delivery drivers, who must pay for their own gas.
”It’s not something we profit from,” general manager Eddy Chamorro said. “We’re just trying to keep everyone happy.”
National florist ProFlowers charges a $1.93 courier fuel fee on top of its $9.99 delivery cost — and it has no plans to lift the surcharge.
”If gas prices continue to go down, we will continue to see if it’s necessary” to keep the surcharge, ProFlowers spokesman Brent Harney said.
Casablanca Fish Market charges a $7 flat rate for seafood deliveries from its shop on the Miami River to local restaurants, but manager Tania Sanches said that fee has not changed since the company’s inception — and it won’t change now.
`NOT CHARGING’
”We are not charging extra for high gas prices,” Sanches said.
Cruise companies, airlines, taxis and national delivery services have begun to eliminate or reduce the amount they had been charging to make up for high gas prices.
Miami-Dade County taxi drivers earlier this month stopped charging a per-trip fuel fee that went into effect in June, allowing them to charge passengers an extra $1 to $3 depending on the average weekly price of gas. The county’s Consumer Services Department warned cab drivers of penalties if they keep the gas surcharge, and residents were told to call the 311 hot line if they feel they’ve been incorrectly charged.
SIX BRANDS AFFECTED
Carnival has lifted its fuel surcharge for six of its cruise-line brands, saving most customers a $9-a-day fee.
Royal Caribbean Cruises announced it was scrapping fuel surcharges for its ships in 2010 and would reimburse partial tariffs for some 2009 trips if oil prices remain near their current levels. Since July, the company had been charging $10 per traveler per day on Royal Caribbean and Celebrity Cruises, and $15 on Azamara Cruises.
The fuel charges have been a point of contention between the cruise lines and state government officials, who have filed lawsuits in recent years accusing the cruise companies of sneaking hidden fees into customers’ bills.
Florida Attorney General Bill McCollum filed a lawsuit Nov. 5 against Imperial Majesty Cruise Line, alleging the company made about $4 million in the past two years by slipping $20 to $30 fuel surcharges onto fares without adequately disclosing the fees.
The state reached multimillion-dollar settlements about half a year ago with Carnival, Royal Caribbean and Celebrity over the same issue.
AIRLINES’ FUEL
Many airlines cut their fuel surcharges for domestic flights last week, and some ticket prices reflect that with lower fares. But in many cases, the airlines have shifted the surcharge amount into the base airfare, according to the website FareCompare.com.
Some small-business owners who resisted the temptation to pass on rising fuel costs to their customers are starting to feel relief from lower prices at the pump.
NO CHARGE ADDED
Glen Wauchope, who runs Glen’s Locksmith & Service in Pembroke Park, said he never considered adding a gas surcharge because he thought it would turn away business.
”Things are slow right now, so we’re just trying to survive,” Wauchope said. “The last thing I need is an extra cost to run away my customers.”
The original source of this article can be found at:
www.miamiherald.com / Mon, Nov. 17, 2008
Tags: florida, Gas prices, miami, miami local news, miami news, South Florida News