Rising gas prices caused by the Persian Gulf crisis have hurt everyone financially, especially mass transit.

Diesel prices have jumped according to Charlie Battiasta, general manager of Huskie Line. The price for October 1989 was 99.9 cents per gallon, compared to $1.50 for October 1990. Battiasta said that recently the prices have dropped 20 cents to $1.30, since October.

The increased diesel prices have forced mass transit to pay $4,400 over their budget, said Todd Allen of the Mass Transit Board. He said that mass transit has a “fuel escalator clause,” which is an “arbitrary payment plan.”

Allen said mass transit pays a fixed amount of $1.05 a gallon. If the price of diesel remains under that amount during that fiscal year, then the board receives a rebate at the end of the year because they paid more than they needed to.

If the price does exceed the fixed amount, the board must pay the difference. Last month the difference was $4,400.

Allen said the price of diesel had not exceeded $1.05 a gallon until recently, and in previous years they recieved a rebate because of the low price. Last year mass transit received a $10,000 rebate, but this year they expect to get very little if any back, he said.

Even though the board is paying over the $1.05 originally budgeted for, they still have “$20,000 in reserves and $10,000 in additive bus service which does not get used,” but could be used to purchase fuel, he said.

The $4,400 which was just paid came from the reserve fund, Allen said. “The reserves haven’t been touched in many years,” he said.

Allen said that while no direct problems should arise because of the reserve fund, the budget crunch still could be felt indirectly. Last year a $10,000 rebate was used to help dig the board out of debt.

This year that money won’t be available or it will be substantially less. He said the current debt is $12,000 because NIU did not accurately predict service costs for mass transit.

The debt would be $22,000 except the rebate money was used to reduce it, he said. With the prospect of a large rebate fading quickly, the board might be forced to cut service to reduce or control their debt.