Impacts of gas prices vary in area
Number of holiday travelers still down despite decreases

By LARRY MEYER
ARGUS OBSERVER
Saturday, November 29, 2008 10:29 PM PST

Lower fuel prices keep the pumps busy at Farmers Supply Co-op Friday.

ONTARIO — Despite gasoline prices dipping below $2 a gallon, down from more than $4 a gallon this summer, fewer people traveled for the long Thanksgiving weekend, making this the fourth consecutive travel holiday this year showing a decline in the number of holiday travelers, according to AAA Idaho.

A global collapse in oil prices, fueled by fears of future economic slowdown and diminishing driver demand, continues to drive wholesale and retail prices lower, giving motorists some relief at the pump, Dave Carlson, AAA Idaho, said.

Also, wire service reports said OPEC ended its meeting recently without any announcement  of output cuts, which would have driven up prices, creating more good news for the motorists. An OPEC official said the group was concerned about the world economy. OPEC ministers will meet again in December.

As of Saturday, gas prices were as low as $1.85 per gallon.

On the local front, the increase in gas prices has had its impact on local government. Rachel Hopper, Ontario finance director, said the city has been losing thousands of dollars in hotel/motel tax receipts as fewer people have been staying in Ontario.

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In one month, receipts were down $8,700 from the previous year, and in the next month, they were down about $10,000 from last year before they started to come back up, Hopper said. In the last recorded month, receipts were down $3,700, she said.

“We are getting closer,” she said.

Part of the receipt revenues goes to Four Rivers Cultural Center, and the rest goes into a city fund.

Others are also benefitting from the decline in the gas prices.

“It is definitely helpful,” Barbara Hickling, owner of Courtesy Cab in Ontario, said. “We’re paying quite a bit less. It leaves us a little more money.”  The rising gas prices were affecting her business, she said, but she has not increased her fares yet.

If the prices had gone up further, she probably would have been forced to do so.

What is also affecting her business is the start up of the Snake River Transit, Hickling said.

“We’re getting less people riding now,” she said.