North Texas Transportation Company Looks At Passing Higher Gas Costs On To Customers
WATAUGA, Texas (CBSDFW.COM) - Gas prices jumped another dime Friday, March 4 in North Texas rising to their highest level in eight years.
At $3.56 per gallon, prices are up a quarter over last week and more than a dollar over the same period in 2021.
A driver who fuels up with 12 gallons every week, would be spending about $50 more each month than a year ago.
It's not slowing down drivers.
Gasoline demand has been climbing by more than 80,000 barrels a week for the last five weeks, according to data from the U.S. Energy Information Administration.
AAA Texas said even with prices forecast to continue climbing there is still strong demand for travel whether driving, flying or cruising.
Consumers may find they are also paying more though in other places due to the increased costs for businesses.
At her student transportation business in Watauga, Rushelle Wetzel said the fuel cost for her 19 large vans climbed from about $1,300 to more than $2,000 in just a week.
"You've already got payroll increases for small business," she said. "You've got inflation for maintenance, for parts, for services. Now you're going to add fuel increases. That is a lot for any small business to take on."
While the company is absorbing some of the increase, it expects to have to use a clause built into its customer contracts that could increase the cost of rides from $0.50 to $2.
With their business based around the school calendar, Wetzel said the business faces a dilemma trying to plan for costs the rest of the year.
"They assume we might be at $5 a gallon over the summer, but is that where we're going to be in August and is it going to go up from there. We just don't know."
It's also difficult for many regular folks who just need to get from point A to point B and back every day.
"It's putting a damper on everything, really," said driver Ricky Carrion.
He said the extra cash he's spending on gas means he and his girls will be eating in for the foreseeable future.
"That takes away from my family. We're going to be watching movies and eating popcorn for a week," he said.
"I've been driving around trying to find the cheapest gas," said Jonathan Hinjuanzo. He said he finally gave up.
"My heart is like, 'Oh My God.' I was just telling them, 'If gas is 4 dollars, I'm going to start walking.'"
Experts point to a reduction in supply and a rise in demand for fuel, and they expect costs to continue to surge as the war in Ukraine intensifies.
"You have to remember, not only do we have the situation overseas, but summer is when gasoline is more expensive," said Daniel Armbruster, a AAA spokesperson.
Drivers said they're bracing themselves and their bank accounts.
"I have to pump at least every six days, so it's going to add up. Almost 400 bucks a month on gas," said Hinjuanzo. "That's crazy."
Brooke Rogers contributed to this report.