NEW YORK, June 12 ― Surging energy costs are being felt across the US economy with varying effects. Some consumers are absorbing higher costs, while others are shifting behavior or cutting back.As he contends with surging fuel prices, truck driver Lamar Buckwalter sees signs all around that consumers are cutting back.
Mitigating things a bit is Buckwalter’s membership in a national small trucker association that offers discounted fuel. He can also pass on a fraction of the fuel price spike to consumers. “We’re trying to live. We have no choice. Inflation is all over. Rent, food, everything, but it’s take it or leave it.” Dubbing the jump in prices an “emergency,” the New York Taxi Workers Alliance called in March for a 75-cent temporary fuel surcharge. But city officials have not taken action thus far.Airlines have been among the sectors most directly affected by spiking energy prices, with jet fuel prices jumping almost 50 per cent since mid-March, according to Argus.
But in a twist of fortunes in a pandemic-dominated era, airlines are benefitting from “pent-up demand” of consumers desiring travel after more than two years of being hemmed in. “We are seeing mixed messages. Oil prices obviously have an effect,” said Aaron Szyf, economist for the US Travel Association.