MISSISSIPPI (March 16, 2011 - Desoto Times)—Gulf Coast gas prices rose on average, $.43 cents
from Feb. 14 to March 14 according to the U.S. Energy Information
Administration, putting a burden not only on many families checkbooks
but also distribution companies around the Mid-South.
James Lunsford, president of A&B Distributing in Olive Branch, said the increases affect the company’s profit field.
“It
doesn’t really affect beer prices as much as it affects consumption,”
Lunsford said. “There is no question that the expense gets into the
income where beer is purchased.”
Lunsford said his suppliers raise their costs on a quarterly basis but the distributor doesn’t get to.
“We
don’t do fuel surcharges to our customers,” Lunsford said. “It doesn’t
affect the consumer this year. When we lookout next year, it could
affect the cost but we really have to eat those fuel surcharges every
quarter.”
Joe Bell, manager of marketing and public affairs for
The Kroger Co. Delta Division, said the rising fuel costs go hand in
hand with food costs.
“We’re not only delivering from our distribution center, but
we’re getting the food from all over the world to our distribution
center,” Bell said. “They’re working in tandem. It costs truckers more
to get to us and us more to get to the store.”
While each
truckload of food coming into the distribution center has a $200 to $300
surcharge due to fuel costs, Bell said the increase doesn’t translate
to food costs the same way.
Read more on Desoto Times Tribune Web site: http://www.desototimes.com/articles/2011/03/17/news/doc4d8151d6d3fb6081647287.txt
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