Gas prices fuel concern

By Tom Purdom
Staff Writer

GRANTS — Government entities which require a great deal of gasoline to power vehicles are taking a second, harder look at ways to conserve.

The problem is the price of fuel these days does not seem to be getting any better and predictions are that the it will hit $3 per gallon sometime this summer. Already the price is pegged at one-tenth of one penny below $2.50 per gallon for premium in two of Grants' service stations catering to Interstate 40 consumers.

Two weeks ago the Allsups stores in Grants and Milan sold low-octane, unleaded gasoline at a price slightly below $2 per gallon, but those days are gone and now, even the traditional low-price gasoline at Allsups is selling for $2.119 per gallon. With skyrocketing gasoline prices slamming area consumers, at least one retailer called it quits Friday.

Mustang gas, located in Milan, sold all of its remaining stocks of gasoline and quietly closed down. All of the gasoline pumps have yellow-colored markers on the pump hoses, and the price for the low-grade gasoline will be frozen at $2.099 per gallon on the signs posted at the front of the gasoline station.

What happened at Mustang gas is indicative of what is happening across the nation as gasoline prices soar and energy experts predict there is no end in sight. The predictions don't offer much hope for the summer driving season when prices traditionally increase.

New Mexico State Police District 6 Commander Capt. Jerry Cottrell said department analysts saw it coming months ago and about September 2004 the word came down from Santa Fe at headquarters for each district to come up with conservation-minded gasoline consumption contingency plans. "The bottom line is, we are a law enforcement agency and our basic service to be be out driving around where the public is at," Cottrell said.

With gasoline prices rising fast, every time a law enforcement officer buys gasoline at the pump, it is going to impact the district's budget a little more. "Every month we do a budget review and with the prices going up, we try to reduce the amount of gasoline used and, at the same time, produce a good level of services," Cottrell said.

City Manager Bob Horacek oversees a fleet of cars and trucks managed by the city of Grants. Horacek said Grants buys its gasoline in bulk. "Since the beginning of the fiscal year until now we've seen about a 20 percent increase in our gasoline costs," Horacek said. "When we budget we allow for increases, but not that much of an increase."

Horacek said the higher costs will impact the city, but the major impact will come at a later date. "The costs we are seeing today will affect our budget next year," Horacek said.

Grants budgeted about $90,000 for its fleet of vehicles this fiscal year. The fleet includes all police vehicles, as well as all service vehicles.

Village of Milan Accounts Payable Clerk Roseanne Lopez said the village operates on a bid system just about every two or three weeks. Bulk wholesalers like the bid system better because they do not get stuck for a whole year with a price substantially lower for the city than what they are buying the gasoline.

Village police cars and village service vehicles used to gas up at service stations, but Lopez said now the village buys in bulk at a rate of about 500 gallons every two weeks. Lopez said when Milan was buying at the pump in 2004 the prices were averaging about $1.639 per gallon. "The last bid we had was for $1.809 per gallon,"she said.

Lopez said Village Manager Carlos Montoya has talked with department heads about gasoline conservation in an effort to hold the line.

Cibola County Sheriff's Department Undersheriff Johnny Valdez said the department is drafting a conservation plan for deputies. "Our gasoline costs are a healthy bite out of the budget," Valdez said. "It's starting to affect us."