Gas Prices Are Hurting the Service Industry

Gas Prices Are Hurting the Service Industry

Gas Prices Are Hurting the Service Industry


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Home Page > Business > Gas Prices Are Hurting the Service Industry

Gas Prices Are Hurting the Service Industry

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Posted: Dec 07, 2009 |Comments: 0
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Gas prices have been steadily rising for more than six years. According to the U.S. Department of Energy, the average retail price of gasoline in the United States in March of 1999 was .05 per gallon. The price has been rising ever since, with prices reaching over .90 per gallon in 2009. This shows an incredible increase in the cost of gas. 

Rising gasoline prices affect both individual consumers and businesses, but small service businesses often get hit hardest. Small service businesses don’t have much of a financial reserve to cover rapid increases in their cost of doing business, so they are often the last to get paid when their customers fall on hard times or when their bills are higher than expected.  Making it hard to pay for the gasoline they use to provide their services to their customers.  The effect of keeping gas prices high may cause many service businesses to go bankrupt and will cost the economy many more jobs.  With the unemployment rate over 10% we need every job.

Businesses such as UPS, Fed EX, Pizza places that deliver, junk removal services, and even the local plumbers, construction men, and air lines were very effected by the high gasoline prices because they are now spending more money on gas, which means their annual profits are getting smaller. In conclusion, the gas prices have began to fall, and smaller businesses are doing much better, but there is no telling where the gas prices may be next or how it will later affect the economy.

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