Gas prices fall, surcharges don't

Costs still passed on to customers

Updated: Monday, 17 Nov 2008, 7:09 PM EST
Published : Monday, 17 Nov 2008, 7:09 PM EST

GRAND RAPIDS, Mich. (WOOD) - Some cruise lines are decreasing their fuel surcharges, but many businesses in West Michigan say they can't follow suit.

Foreway, a trucking and logistics company in Coopersville, knows the price of gas has fallen, but their surcharges remain. "We feel the impact of purchasing transportation as well as the acutal impact of putting people in those trucks," said company president Pam Hassevoort.

They spent an extra $940,000 for their fleet of 40 trucks so far this year, and they had to pass along the charges to their customers.

"It's all driven by a surcharge contract that we have with each customer, and it's based on the Department of Energy's national averages," she said.

Customers shoulder the travel costs, too. Delta Airlines recently announced they'll start charging $15 for the first checked bag from passengers. AirTran made a similar announcement.

United Airlines was going to increase the cost of the second checked bag, but rescinded that based on the drop of fuel prices.

Ed Aboufadel, who follows gas prices closely through thegasgame.com, predicts gas prices will stay low through the end of the year.

"It's kind of like betting on the Lions to lose," he told 24 Hour News 8. "It's like, well, that's the easy bet each week. So the easy bet is, yeah, prices will go down some more."

Customers looking to avoid surcharges need to make it happen for themselves. "I think at this point consumers could say, look, i'm not paying for that," he said. "The price of gas is $1.89 out my window here, and if you don't take that off, I'll go call one of your competitors."