LINCOLN, Neb. (KOLN) – Nebraska grocers say several products including meats are at alarming prices. Some are higher than they’ve been in several years.
One of the big reasons is transportation costs.
Local grocery stores including Suji’s Indian Grocery are already seeing a 5 to 20 percent price increase on certain products.
The owner, Mahak Singh, said, “Produce is going up and down every week. The beans and rice, they [the wholesalers] are increasing from February until every time you order that.”
Singh said he also pays for the transportation of products, which has gone up an additional 15 to 20%. But, the owner refuses to raise his prices because he said he planned and bought some of his items in bulk this February.
“I got them on a reasonable price before they increased the prices,” Singh said. “I got all the year-round supplies then.”
While Suji’s may not be raising their prices, the Nebraska Grocery Industry Association said other Nebraska stores don’t have a choice.
Executive director Ansley Fellers said, “Grocery stores and the food industry run on really tight margins so it’s only so long that folks can absorb some of those increased prices before consumers start to feel it.”
Fellers said this is why some cuts of meat, including briskets and chicken wings are in very limited supply. The grocery association said the issue behind this is demand for these is very high.
“I think once the supply side catches up to the demand side, everything will even back out,” Fellers said.
Grocery officials said the prices for some products is alarming because it’s the highest it’s been in a long time.
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If Mississippians aren’t driving, they are not buying as much gasoline, resulting in a reduction in revenue from the tax on gasoline.
It is too early to see actual data, but it is highly likely that among the many negative impacts of the COVID-19 pandemic, including the tragic loss of life, will be to Mississippi’s highways and bridges.
The primary source of revenue for Mississippi’s Department of Transportation is the state’s 18.4-cent per gallon tax on motor fuels, primarily gasoline.
With the state under a shelter-in-place order, it is logical to assume Mississippians are not driving as much. And if folks are not driving, they are not buying as much gasoline, resulting in a reduction in revenue from the tax on gasoline.
If people are not driving as much, it also could be logical to assume damage is not being done to the state’s infrastructure system. But many argue that the roads and bridges already were in a deteriorated condition that a lack of use cannot fix. Besides, the large semi-trucks that do the most damage thankfully are continuing to travel up and down the roads, delivering much needed supplies, such as food and presumably toilet tissue, though, it is often hard to prove toilet paper has been delivered by looking at the store shelves.
The gasoline tax generated $305.5 million in revenue for the Department of Transportation during the past 2019 fiscal year. Collections from the motor fuel tax for the current 2020 fiscal year were slightly outpacing last year’s collections before COVID-19 ground much of the activity in the state to a halt. It is safe to assume that until the coronavirus is contained that travel will be diminished.
It should not be a surprise that COVID-19 is impacting the transportation system just as it is tragically impacting nearly every aspect of life.
“Like all of us, the Mississippi Department of Transportation is facing uncertainty due to the COVID-19 pandemic,” said Melinda McGrath, executive director of the agency. “With residents sheltering in place to slow the spread, there is less demand for fuel. As a result, we anticipate fuel tax receipts to be decreased in the coming months. However, ongoing highway projects will continue as planned, and MDOT will continue to make efficient use of the resources available.”
For about a decade there have been ongoing debates on how to provide additional funds for transportation – on both the state and local levels. On the state level, the Department of Transportation has said it needs an additional $400 million annually to keep up with repair and maintenance needs.
A recent report said the state has about 30,000 miles of highway and that about 11,000 are in need of repair and the state has about 5,700 bridges with about 900 under restrictions that hinder commercial traffic.
The 18.4-cent per gallon gasoline tax is the nation’s third lowest.
Before the pandemic hit, Transportation Department officials said the tax was generating essentially the same amount