By Ershad Kamol
kkhan@dominionpost.com
Zara Jones, 47, says her livelihood has been affected by the ongoing rise in gas prices, which have hit record highs every day for over two weeks and stand at $4.50/gallon on average last week in the United States.
With the increased gas prices, Jones said, costs of essentials have gone up, including groceries, resulting in financial pressure on her and her family.
Jones, of Morgantown, said she spent about $200 more in May than in April on gasoline and groceries alone.
“Costs for groceries and other essentials increased significantly when my income remained stagnant,” she said.
Despite curtailing spending on leisure trips or emergency purchases, Jones anticipates needing to cash out her limited savings, as there is no prediction for dropping gas prices soon.
Like Jones, many low- and middle-income people in West Virginia, and across the United States, have been affected by gas prices since the Biden administration imposed a ban on importing fuels from Russia as a measure for restraining Russia’s invasion of Ukraine.
The national average set a new U.S. record May 24 when the country’s average stood at $4.99/gallon. It was $ 3.39/gallon six months ago and $ 3.03 a year back, according to American Automobiles Association (AAA).
On its website, AAA predicts more increases in gas prices due to a sharp fall of the gasoline stocks, rising prices on crude oil in the global market and increased summer
traveling.
In a Reuters report, AAA’s Manager for Federal Affairs Devin Gladden said gasoline could reach $6-$7 per gallon.
Economists predict the situation could lead to a period of high economic uncertainty with an increase of inflation.
“We don’t know when these high rates of inflation will end. That said, most economists don’t expect this to end in the coming two or three months,” said John Deskins, director of Bureau of Business and Economic Research at West Virginia University.
Deskins, however, believes Americans will have some relief in gas prices after the war ends and peace is restored in Ukraine.
The impact of the increased inflation caused by the record gas prices will impact everyday people in financially strapped states like West Virginia — where per capita income is less than the national average but gas prices don’t reflect the difference.
Per capita income in West Virginia was $47,817 in 2021, which was the second lowest among all 50 states. The national per capita income in the year was $63,444, according to the Fred (Federal Reserve) Economic Data.
The average gas price in West Virginia hit $4.54 per gallon on Thursday — it was $3.94/gallon a month ago and $2.99/gallon, a year ago, said James Garrity, Public and Legislative director of AAA East Central.
Visiting several gas stations, chain and grocery stores in the area, The Dominion Post spoke with people who have felt the pressures of gas prices and costs of other necessities.
The Dominion Post agreed not to use full names to protect the privacy of some we talked with.
While filling his gas tank at a station in Sabraton recently, Marshall, who works for a leasing company, said he hasn’t experienced a financial crisis like this in his 30 years. As a result, the future — at least for now — is gloomy.
“Life for people like me is in real trouble,” he said.
Another motorist, a
63-year-old who asked not to share his name, said he was almost unable to afford the needs of his six-member family. He never expected to see prices like this, he said, and can’t imagine how many people will manage if it continues.
Xavier, a 20-year-old who was also filling up, said he won’t be going on any trips this summer.
And those who don’t have cars and depend on Uber or Lyft rides need to spend more money these days. Both ride share companies have increased passenger fares across the U.S to compensate drivers.
In a March release on its website, Lyft said the company added a 55-cent fuel surcharge to each ride for at least the next 60 days, while Uber set 45-cent or
55-cent surcharges on each trip, depending on location. Uber Eats deliveries will include a charge of
35-45 cents on each order, according to the release.
Some relief can be found, courtesy of Mountain Line Transit Authority. The company’s CEO David Bruffy told The Dominion Post the authority has no plans to increase fares in the face of fuel costs.
The pain doesn’t stop at the pump, however. Both small grocery stores and big chain stores have increased prices for many items — anywhere from 5% to 100%, according to shoppers.
At an area Kroger store, Benjamin, a 26-year customer, said the cost of his items has increased by an average of 20%, while the cost of some items like eggs, milk, chicken and vegetables seem to have doubled.
“Today I purchased eggs for $5, when a few months ago it was $2.59,” he said. Fresh fruits and vegetables may be off the list, he added, until prices come back down.
At an area Walmart, Breanne McDowell, 55, said she had no other option but to pay closer attention to her spending when doing the weekly shopping. Some items have increased by
25%, she said, while, like Benjamin, she’s seen other things double in price recently.
“Bread, pasta and potatoes have limited supplies at the stores,” she said.
Nawshin Fahmida Hossain, who has been living in the U.S. since 1998, said she’s never seen prices like these.
“Nowadays, I need to purchase milk with
$4 when it was just $1.19, and chicken with
$2.89 when it was $1.69,” she said.
Abdul Al Kassar, owner of local market Kassar’s Food & Gifts, said they increased prices of vegetables by 20%, as well as bakery products. There’s been a 10% increase on wheat prices and 5% on rice.
In response to The Dominion Post, Walmart’s press officials did not directly answer specific questions, but shared a transcript of a May 18 conversation between company officials regarding business records.
Chief Financial Officer Brett M. Biggs briefed the group saying, “While we did see some supply chain improvement early in the quarter, the war in Ukraine and ongoing COVID impacts in various parts of the world, including China led to increased
challenges.
“Consumers are feeling inflation pressures as evidenced by an increase in grocery private brand penetration. The category mix shift along with increased inventory, some of which was delayed in arriving, led to higher than normal markdowns for general merchandise,” Biggs added.
Kroger did not reply to requests to the regional and central offices made on three consecutive days.
The ongoing increase of gas and grocery prices also appears to be a concern for politicians. In response to The Dominion Post, U.S. Sen. Joe Manchin’s office issued a statement by the senator on consumer inflation rising to 8.5% — the largest 12-month increase in four decades.
“Let me be clear, inflation is a tax and today’s historic inflation data tells another chilling story about how these taxes on Americans are completely out of control,” the release states. “Americans are seeing some of the largest increases in goods such as gas up 48%, beef up 16%, chicken and milk up 13%, and staples like coffee and eggs are up 11%.”
The Federal Reserve and the Administration failed to act fast enough, and today’s data is a snapshot of the consequences being felt across the country, the senator said.
Sen. Shelley Moore Capito’s office shared her May 18 speech on the sufferings of West Virginians because of gas prices.
Capito requested Biden prioritize domestic energy production, work to return the United States to energy independence and highlighted stories she’s heard from West Virginians across the state.
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