The dollar's decreased value, which makes imports more expensive, is an important factor driving up prices for oil, steel and other raw materials used in auto parts, said Harry Veryser, an economist at the University of Detroit Mercy and former chairman of an automotive parts supplier.
One spot of relief is auto insurance. Rates have remained steady or fallen in many states because insurers are losing less money on claims and face competitive and regulatory pressures to avoid rate increases, said Donald Light, senior analyst for Celent in San Francisco. If high gasoline prices prompt less driving, accidents--and insurance rates--should drop further, Light said.
In big cities, drivers are finding it more expensive to park. An annual survey by real estate services provider Collier's International found that daily parking rates rose in 2007 for the fourth straight year, a trend the company expects to continue in 2008.
But Benjamin Sann, founder of the Web site bestparking.com, which tracks rates in Boston, Manhattan, Philadelphia and Washington, said more companies have dropped prices recently as they struggle to attract and maintain business.
Indeed, some automobile-related businesses are trying to avoid passing their rising costs onto customers.
To retain his best limousine clients, Amber has not yet raised rental rates but has been forced to include a fuel surcharge of up to $5 on some trips. Customers, he said, "are not happy."
Midas has stopped advertising prices for promotions among its 1,700 shops in the U.S. and Canada after a deal on brakes last year was too low in busy metropolitan areas and too high in more rural locations, said Bob Troyer, director of corporate affairs at the company's Itasca, Ill., headquarters. Prices are set by individual owners based on their costs and local competition.
Despite motor oil costs rising 15 percent in recent months, Niaz has maintained his Midas location's prices to remain competitive and meet any local promotions. Visible from his front desk is an Exxon Mobil station where regular-grade gasoline was selling for nearly $4 a gallon.
"I'm complaining myself," said Niaz, who recently spent $62 to fill up his 4-cylinder Toyota Camry.

At first I was going to post this story from the UK Telegraph as an interesting piece... food for thought if you will... with the tag that this t...


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