Gas Prices May Change But Grocery Prices Not Likely - Central Coast News KION/KCBA

Gas Prices May Change But Grocery Prices Not Likely

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SALINAS, Calif. - Record highs at the gas pump the past two weeks have cost drivers but are not expected to cost grocery shoppers.

Although the fuel prices hit record numbers, breaking previous records from 2008, because of the type of contracts used in the agriculture business, prices will not change.

Frank Devine, of Fresh from D'Vine says, "I can't raise my prices to my customers. We are in long term agreements. We set our prices once a year, we review them as needed. But I can't raise my price just because diesel went up. I just have to make it work in spite of the rising price."

Devine has been working in the shipping company for about 8 years and says its part of the game.

State averages in California for diesel fuel is cheaper than unleaded but Thursday morning it was still $4.52. 

He says he hopes that he budgeted for the increase but only time will tell.

"It affected me, it hurts my pocket, but there's nothing I can do about it. I don't lose much sleep over it," says Devine.

Devine says the business is more than just growing. Its a game of logistics and some of the smartest growers are right here in the Salinas Valley.

 

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