SAVANNAH, Ga. (WTOC) – Fuel prices are spiking as the U.S and Israel bomb Iran — and local business are paying the price.
Every time you pass a gas station you see how rapidly prices are going up.
The jump in diesel fuel prices has been especially dramatic.
WTOC spoke with a local farmer and delivery business Monday that both say dealing with the spike is painful.
“Well, lately it’s been a little hurtful, to be perfectly honest,” said Mike Roush, vice president, Roush Delivery Service Inc.
Diesel prices are rising everyday.
Triple-A says the current average in Georgia is $4.72 a gallon.
That’s more than a dollar higher than last week.
“We’ve seen a spike in diesel and fuel of over a dollar a gallon. and obviously, with a small company and a transportation company, that’s one of the biggest expenses we have,” said Roush.
Roush says they are paying $100 more every time they fill up.
Ottawa farms an 800 acre farm in Bloomingdale is also feeling the impact every time they have to turn on their tractors.
“Its tough to try to put fuel in these tractors at the price we got to pay for it right now,” said Pete Waller, owner, Ottawa Farms. “Unless things change around on that, I see a barrel all the way up to $100 this morning.”
Waller says that farmers are already struggling enough in Georgia now you add the price of fuel on top of it.
“There’s no way in the world we can continue on the way we’re going with the prices and things like that,” said Waller. “We’re burning, on a tractor, burning 100 gallons a day for 10 hours, plowing.
Mike Roush says with spikes like that in fuel they will have to add a surcharge onto their delivery prices.
“It’s not a surprise to them to see guys like us that represent them have to increase their costs a little bit and have to make the necessary adjustments with fuel surcharges and whatnot to try and offset those extra costs,” said Roush.
Roush says that although it hurts now he doesn’t expect the high prices to stick around for long.
“I think we’re gonna see some relief sooner than later and with the reserves that the United States has and other partners that we have around the world has, I think we’ll be okay in the long run,” said Roush.
We also reached out to UPS Monday to ask how diesel prices are affecting their shipping costs.
They said they follow an index based fuel surcharge that follows U.S. Energy information administration average.
Their current surcharge on shipping rates is more than 24%.
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