Will gas price dip help vehicle-dependent firms?

Greenco Environmental had some ambitious plans, but last spring found itself pinned between the fixed rates it had negotiated for contracts and the soaring cost of diesel fuel.

The Barnesville company, which hauls organic trash and turns it into compost, was spending up to $1,500 more per month on fuel. Now, with prices falling, the company has decided that money can be used to create a new job.

“We hired our first driver,” said Tim Lesko, the owner. “What we have saved in lower prices accounts for about 50 percent of his salary.”

Gas prices peaking at more than $4 a gallon for regular acted like a tax on companies and consumers alike, economists say. The question now is how much the recent drop to about $2.60 will counter this fall’s bad employment and market news, or brighten the gloomy outlook for holiday spending.

The consensus: While it helps firms like Greenco, it doesn’t change the big picture.

“Having the money figuratively back in my pocket really hasn’t made much of a difference,” said Sarah Douglas of Smyrna, who runs a public relations firm.

“I do expect that we will have a smaller holiday spending budget as a family this year.”

Merchants hope for a boost but don’t see the trend as a game-changer, said John Heavener, president of the Georgia Retailers Association. “It will at least get people into the stores,” he said. “It’s going to have a positive effect, but I don’t expect the picture to be bright. We think there will be a bump, but it will be almost imperceptible.”

Holiday retail sales usually rise 3 or 4 percent during times of moderate growth, Heavener said. “This year, if we get 1 or 1.5 percent over last year, we had a pretty good year.”

Fuel is among the top expenses for many companies.

Among the thirstiest Atlanta-based corporations is UPS, which boasts a fleet of 93,600 vehicles, 268 heavy jets and 311 smaller planes.

“We pride ourselves on being able to control our fuel expenses,” said spokesman Norman Black.

But that has become very difficult: In the year’s second quarter, UPS spent $1.17 billion on fuel — up 67.4 percent from the year before. Those fuel costs amounted to roughly 9 percent of the shipping giant’s revenues that quarter.

Fuel can be just as big a factor for companies at the other end of the size scale.

Carithers Flowers of Marietta, which delivers to a 45-mile radius, has 15 vehicles that burn roughly 500 gallons a week while chalking up 7,200 miles.

The company added a $1 fuel surcharge last year — not enough to cover costs, said Charles Carithers, company president. The florist may be slow to roll back that charge, he said.

“We have basically lost money on delivery for a year. Over time, we can recoup some of what we have absorbed for the past year.”

At the Atlanta Community Food Bank, lower fuel costs offer hope of stretching services a bit further.

“I’ve got 10 trucks, burning diesel, out on the road every day,” said Bill Bolling, founder and chief executive officer of the Atlanta Community Food Bank. “This is going to help us some. We can apply some resources to other areas. This should translate into more food for hungry people.”

Still, he noted, fuel prices remain historically high — and could reverse direction again. “We’ve got to work smarter,” Bolling said.

Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University, estimates metro Atlantans will spend about $100 million to $200 million less on gasoline this fall than they would have if prices stayed above $4.

But that is not enough to counterbalance a slumping home market and the continued trauma in stocks and bonds, he said.

“The mood is not cheerful, but it helps a little bit,” he said. “Otherwise, consumer spending at Christmas would be horrendous.”

Consumers, meanwhile, are being bombarded by advice to pull in their horns no matter what the price of gas.

“I’d recommend that consumers use the ‘found money’ from lower gas prices to pay off credit card debt. The best way to weather the economic storm and recession is to have as little debt as possible,” said Emily Sanders, president of Sanders Financial, of Norcross.

“If they are fortunate enough to have no debt, they should contribute to their Roth IRAs and buy bargain stocks.”