SPECIAL SERIES: Record High Gas Prices Taking It`s Toll on Salem-Keizer Residents, Busine

With the average price for a gallon of regular unleaded gas at a record high $2.86.1 on Friday in the Salem area, local and state leaders say the impact on the local economy may be felt for years to come.

The futire of Oregon's gas stations? Image Courtesy: ratsonet.com

(SALEM) - With the average price for a gallon of gas in Salem and Keizer nearing, or in some cases surpassing three dollars a gallon, local and state leaders say while there isn`t much they can do to stop the prices from rising, the effect it will have, not only now, but in the long-term, will be huge on both state and local economies.

From towing companies, to pizza delivery drivers, from state, city and county vehicles, to everyday drivers, the toll the record gas prices is having on the mid-valley is huge.

Pawn shops, check cashing stores, and record stores throughout the valley say they are seeing more and more customers walking into their stores everyday.

Most are trying to find an extra $5, $10, $15, $20, $25 to fill their vehicles tank.

On Thursday, Elliott Eki with AAA said the average price for a gallon of regular unleaded gas jumped nearly 2-cents to 2.83.5 a new record for the Salem-Metro area. The statewide average is $2.92.

Eugene also set a new record high at $294.3, Medford fell overnight to $2.92.7, and is a long way from their record high $3.06.9 set September, 4th, 2005.

The Portland-Metro area is at record average $2.85.1.

On Friday, Eki said Salem`s average price jumped overnight nearly 3-cents to $2.86.1. Eugene rose to $2.96.4, Portland went up to $2.87.7 all new record highs.

The national average is at $2.92.9, statewide average hit a new record high $2.91.1. The old record $2.90.3 was set September, 9th, 2005.

Republican State Representative Vicki Berger from Salem said while the state can`t do much about the gas price situation, the impact the high fuel prices will have on the state economy will be huge across the board.

Every state and local agency, business, and family budget is or will be affected by the prices Berger said.

How much of an economic impact, we may not know for months maybe even years.

Auto repair shops say there seeing about a 20 percent drop in business, while some delivery services are having to tact-on a fuel surcharge due to the high fuel prices.

Cherriots officials said their current budget estimated low sulfur diesel costs at $1.51. The current price is at $2.41.

They also tested three buses recently with bio-diesel. The buses got 4 percent better fuel mileage than those running on low sulfur diesel.

However, the current price for a gallon of bio-diesel is $2.55, and would cost Cherriots an estimated $95,000 year if all buses were to run on bio-diesel.

Republican State Representative Jeff Kropf from Sublimity says the Governor should suspend the state gas tax for 60-days to give Oregonains some temporary relief.

As for a long-term solution, Kropf said the Governor should call a special session get to comprehensive bio-fuel legislation jump-started.

Marion County Commissioner Patti Milne said she is concerned about the high fuel prices throughout the county, especially the what the cost is doing to farmers bottom-line, because the county is very dependant on money from the agricultural industry.

The Oregon Petroleum Association said Monday the high price for gas has some gas station owners in the state wanting to get out of the business altogether because it`s becoming harder and harder for them to make a living, plus the daily bombardment of complaints from customers who blame them for the high gas prices.

On Monday, the Salem City Council could decide to raise garbage rates in the city for the first time in over a decade.

One of the reasons for the proposed increase, higher fuel costs.

According to the Mid-Valley Garbage and Recycling Association the increase would be between 5.5 percent and 8.3 percent for residential customers and 5 percent for commercial customers in Marion County and 8 percent in Polk County.

If approved Monday, the increases would take affect on Tuesday, which will mean residents and business with already tight budgets will have to come-up with a little more.

REPORTERS NOTE: Salem-News.com tried to get comments from Governor Ted Kulongoski and Senate President Peter Courtney for a Democratic view of this story. Also Salem Mayor Janet Taylor, and several city council members. Unfortunately those calls were not returned.

Coming This Weekend: The effect the high gas prices are having area boat owners and dealers, and if local auto dealers are seeing an increase in sales of more fuel efficient vehicles.

Tuesday`s Story: Salem-area auto repair shops are surprised that with the high prices for fuel business is down.

Monday`s Story: With gas prices expected to go over three dollars a gallon before this summer, many families are temporarily exchanging their possessions for gas money, and some gas station owners say they want out of the business altogether.