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High Gas Prices Could End 32 Years of Milkman Service
Posted By Nicolas Loris On March 5, 2012 @ 2:30 pm In Featured | Comments Disabled
You don’t see too many milkmen out delivering bottled milk to peoples’ homes, and because of high gas prices, you might even see fewer.
Rockville Home Milk Delivery  has been in operation for over 30 years, catering to the demands of nearly 5,000 homes in Los Angeles and Orange Counties. Delivery service includes  not just varieties of milk (soy, organic, chocolate) but also cheeses, eggs, cream, juices, water, cheesecake, baked goods, and even tamales. But high gas prices are forcing delivery cutbacks from twice a week to just once in an effort to save on expenses.
“It breaks my heart. Thirty-two years of driving, delivering milk early in the morning…to build this from nothing, to build this business with our bare hands, my wife and I, to just see it just disappear right in front of our eyes,” a discouraged Jim Pastor said  to CBS last week.
Higher gas prices drive up production costs for all goods reliant on transportation, but larger industries are more easily able to pass those costs onto consumers. But as prices rise, it’s difficult for consumers to justify paying a premium when prices jump. Individual distributors, who operate on razor-thin margins, have a much more difficult time adjusting to higher gas prices.
Pastor said, “I have no control over this and it’s a bad feeling.” Because oil is a globally traded commodity, and the single biggest factor driving the gas prices is the price of oil, it’s largely out of everyone’s control. While U.S. demand has fallen due to a weak economy and a warm winter, China and India are buying crude and driving up the price. The Federal Reserve’s easy money policy has weakened the value of the dollar. It now takes more dollars to buy the same amount of oil in the U.S.
Oil production in the United States has increased on private lands, but last year oil production dropped 14 percent on federal lands and waters, including a 17 percent dip in the Gulf of Mexico, according to the government’s Energy Information Administration. We’re going to need more oil today, next year, and seven years from now. To that extent, Congress and the Administration should create policies that open access and increase production in a timely and efficient manner. Specifically, they should:
Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2012/03/05/high-gas-prices-could-end-32-years-of-milkman-service/
URLs in this post:
 Rockville Home Milk Delivery: http://www.rockviewfarms.com/home_delivery.nxg
 service includes: http://www.wowdelivery.com/products.htm
 discouraged Jim Pastor said: http://news.yahoo.com/video/losangelescbs2-15750780/milk-man-may-be-put-out-of-business-by-high-gas-prices-28409460.html#crsl=%252Fvideo%252Flosangelescbs2-15750780%252Fmilk-man-may-be-put-out-of-business-by-high-gas-prices-28409460.html
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