Gas prices are high for now, but are predicted to drop if the war ends quickly. Meanwhile, area merchants say they are not worried and the cost of gas is not hampering business.

“Unless it gets over $2 per gallon, I’m not concerned,” said Allen Veale, owner of Cyclone Cab, 2006 E. Lincoln Way.

Veale said he averages 20 percent of his budget for fuel costs, allowing for fluctuations in gas prices up to $2 per gallon.

Casey Speake, operations manager of Central Iowa Transit, 2701 Ford St., said Central Iowa Transit charters bus work and holds contracts with school districts for buses. She said fuel costs are always a worry because they affect the prices she charges her charter customers.

Central Iowa Transit’s school bus contracts are not affected because they are under a contract, Speake said.

When gas prices rise above $1.75 per gallon, Central Iowa Transit has to adjust its pricing, she said.

Speake said she and her colleagues have discussed changing prices, but nothing has been changed yet. This would only affect new contracts, not customers she’s already made charter contracts with, she said.

“We’ll take it as it comes and adjust if we need to,” she said.

Veale also said his business is not suffering right now because it can absorb high gas prices for a short while, as long as ridership does not decrease.

Tom Northrop, part owner of Pizza Pit, 207 1/2 Welch Ave., said he has had to change pricing due to rising gas prices.

“It adds to the cost per delivery about 5 to 7 cents,” he said.

Once gas prices go up 50 cents from $1.35 per gallon, it only increases the cost by 5 to 7 cents, so it is not a concern, Northrop said.

Gas prices are rarely a worry for Pizza Pit, Northrop said. They own only economy cars that receive about 25 miles per gallon.

Pizza Pit also owns a hybrid Honda Civic, which cuts back significantly on fuel costs because it get 45 miles per gallon, Northrop said.

“It’s quite a bit of gas savings,” he said.

Veale said he is not worried about gas prices rising much higher in the future.

“I have confidence in the country,” he said. “They’ll get their head together and [gas prices] will come down.”