Soaring fuel costs impacting North Carolina businesses, truck drivers
Rising gas prices are impacting North Carolina businesses and people who rely on fuel to make ends meet.
D.H. Griffin Wrecking Co. fleet manager Rick Swartz said the increased prices for gas is an “unexpected cost.”
“We're going to see fuel prices like we've never seen before,” Swartz said.
According to the American Automobile Association, the average gallon of gas costs $4.03 in North Carolina and $4.17 in the U.S. as of Tuesday afternoon. The national average has surpassed the previous high hit in July 2008 when it was $4.11 for a gallon of gas.
D.H. Griffin is a demolition, recycling and construction company with offices in Raleigh and Greensboro. The company also has other offices across the country, which include 100 trucks and a fleet of 500 other vehicles needing fuel.
“As fast as it's rising, we just have to absorb it,” Swartz said. “You try to absorb it and not pass it along to your customers, but not every company can do that.”
Keith Bartlett is an Uber driver in the Triangle, and is not happy about the increasing cost of gas.
“I usually put $25 (to) $30 in, and I can make plenty of money,” Bartlett said. “But I put $30 in there this morning, (and) it didn't work that way.”
Morgan Owens, a plumber by trade, said he's turned down several jobs because it wouldn't cover his cost of gas.
"It cost me an extra $15 a day to get [to Durham,]" said Owens.
"I lost three jobs [Tuesday] because I had to jack the price up and they said, 'We can't afford that. We will have to call somebody else,'" he said.
Owens adds that at the rate prices are climbing, he believes he will have to cancel more jobs in the near future.
"They need to drop the gas prices," he said. "There is no need for it."
North Carolina State University economist Mike Walden told WRAL News he believes the increased gas costs will change behaviors of people and companies.
“Right now, we really don't have any idea how high it could go,” Walden said of the gas prices. “I mean, we're all guessing.”
Walden mentioned two factors:
- The supply and demand for gas.
- On Tuesday, President Joe Biden ordered a ban on Russian oil imports in retaliation for Vladimir Putin’s onslaught in Ukraine.
Walden said the U.S. could turn to Venezuela or Saudi Arabia to make up for the deficit of banning Russian oil imports. Last year, about 8% of the U.S. oil imports of oil and petroleum products came from Russia.
Unlike the U.S., which is a major oil and gas producer, Europe relies on imports for 90% of its gas and 97% of its oil products. Russia supplies 40% of Europe’s gas and a quarter of its oil. The U.S. does not import Russian natural gas.
“My biggest concern is this fear factor,” Walden said. “You were talking about people who have to drive for work. This especially impacts companies with fleets of vehicles and trucks.”
