With gasoline fast approaching $4 a gallon, Treasure Valley residents have started to drive less, ride buses and commuter vans more and divert other spending to the pump.
Consider:
People are buying less gas. The volume of gasoline sold in Idaho in April was down 6 percent from April 2007.
The ValleyRide bus system has seen a 40 percent increase in ridership on its Caldwell-to-Boise commuter buses.
The Ada County Highway District has added 12 new commuter vans to meet growing demand.
Tax revenue from gasoline sales is down. That's because gasoline taxes are fixed amounts per gallon, regardless of price. State gasoline-tax revenues for each of the first four months of 2008 were below figures for the same months in 2007.
High gas prices are forcing consumers to spend less on other goods and services. That is cutting into sales tax receipts, resulting in a double whammy for state government.
Tom Kloza, chief oil analyst with Oil Price Information Service, which monitors pricing and consumption levels nationwide, said $3.50 was a "tipping point" that has driven most U.S. motorists to alter their driving habits.
"It's hard to quantify exactly how much consumption has dropped," Kloza said. "But some convenience stores are reporting decreases of 10 percent to 14 percent."
Things aren't that bad in the Treasure Valley - yet.
John Jackson, CEO of the Jacksons Food Stores chain that operates 50 retail outlets in the Treasure Valley, said sales at his stores are off as much as 7 percent.
He said he does not expect the gas price crunch to ease anytime soon, given the demand generated by expanding economies in China and India.
"We're facing a scary future," Jackson said. "It's like we're headed for the perfect storm."
Gasoline sales at the 25-store Stinker Stations chain are down about 5 percent, according to co-owner Charley Jones. But diesel sales are taking the worst beating, with sales down 25 percent as the average Idaho price reached $4.64 as of Friday.
Unlike Jackson, Jones thinks prices eventually will ease as domestic consumption drops and refiners' inventories rise.
"They're going to cut (wholesale) prices," he said. "When the tanks get full, it has to be sold. And that will ultimately reach the consumer."
Idaho motorists apparently became serious about burning less gas in April, when revenues generated by the state's 25-cent-a-gallon gas tax totaled $11.1 million, down 6.1 percent from the same month a year ago, according to the state Division of Financial Management.
"I would expect more adjustments are coming in the months ahead," state economist Mike Ferguson said.
As Idahoans pour more of their income into their gas tanks, there is less to spend on other items subject to the state's 6 percent sales tax, Ferguson said. So sales tax revenues are 1.2 percent below projections for the first 10 months of the current state fiscal year, which ends June 30.
More commuters are taking the bus. Ridership on the Boise routes of the ValleyRide bus system has risen 5 percent.
"That may not sound like a lot, but when you consider we carry 900,000 passengers a year in Boise alone, it becomes a significant number," said Kelli Fairless, executive director of Valley Regional Transit.
"We're also fielding about a 40 percent to 50 percent increase in just inquiries about service that we don't have available," she added.
ACHD reports 838 riders in its van pool program in March, the last month for which figures are available. That's an increase of 20 percent from the same month a year ago. Total miles driven by agency vans were up 5 percent, while the number of trips was up 15 percent.
Prices at the pump headed up all week.
On Monday, self-service gasoline in Idaho was averaging $3.74 a gallon. On Wednesday, crude oil futures spiked $4.19 to $1.33 a barrel on the New York Mercantile Exchange. By Friday, gasoline was selling for $3.89 a gallon at some Treasure Valley locations.
Joe Estrella: 377-6465
