Rise in Gas Prices Threatens Rural Areas

FORKS OF SALMON, Calif. (July 2) - The price of gas isn't an annoyance here. It's a calamity.

Peggy Hanley uses a generator that burns a gallon of diesel fuel every hour -- at about $5 a gallon -- to power Forks General Store, the only place to buy groceries for miles around. There's no electric service, so Hanley, the owner, uses the generator to run eight refrigerators, nine freezers, lights and two ice machines for the store, which has been in a trailer since a fire destroyed the original building in 1994.

There are no utilities and no public transportation in this unincorporated town of a couple hundred people along a narrow road that winds through the mountains 314 miles north of Sacramento. Many people here buy gas for their vehicles and gas or diesel for generators that power their homes.

"I'm scared to death" of rising fuel prices, Hanley says. At the store, the hub for visiting whitewater rafters and residents of other isolated towns, gas cost $5.30 a gallon on a recent day when the national average was $4.07.

This community may be an extreme example of how rising gas prices are hitting rural Americans particularly hard, but people in small towns from Maine to Alaska are in a similar bind as those here.

Soaring gas prices are a double-whammy for many rural residents: They often pay more than people who live in cities and suburbs because of the expense of hauling fuel to their communities, and they must drive greater distances for life's necessities: work, groceries, medical care and, of course, gas.

Meanwhile, incomes typically are lower in rural areas, making increasingly high gas prices an especially urgent concern. Rural households also are more likely to have older, less fuel-efficient vehicles such as pickups, the Federal Highway Administration (FHWA) says. The average age of a vehicle in a rural household: 8.7 years, compared with 7.9 years for an urban vehicle.

Rural residents do more driving, too -- an average of 3,100 miles a year more than urban dwellers, the FHWA says.

A May survey by the Oil Price Information Service (OPIS), a fuel analysis company, and Wright Express, a company that collects data on credit card transactions, found that people in rural areas spend as much as 16.02 percent of their monthly family income on gas, while people in urban areas of New York and New Jersey spend as little as 2.05 percent.