Rise in gas prices impacting Mid-Michigan business costs, services
LANSING, Mich. (WILX) - The Russian invasion of Ukraine is driving up gas prices, but it may not just hurt you at the gas pump.
Businesses are being forced to raise prices to make up for the hike at the gas station.
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“Everyone is concerned what’s going to happen,” said Jim Schmidt, co-owner of Hyacinth House.
Schmidt is concerned about the price of gas because part of his business depends on it. Since the Russian invasion and gas prices have soared, Michiganders are paying an average of 87 cents more than March of 2021. As the price goes up, the price of services also go up.
“Our delivery cost has increased a little bit,” Schmidt said. “We have raised our deliveries up by only one dollar.”
Being a co-owner of Hyacinth House for 47 years, Schmidt’s almost always driven a company car and not had to worry about gas prices, but since selling his company to an employee, he said he’s swiping his own card and feeling the impact.
“I’ve noticed when I fill my personal car up now, I kind of take a second to look at it and I’m a little surprised,” Schmidt said. “It’s a real expense for people.”
Aside from paying extra to fill up their tanks, people are also dealing with the cost of materials going up.
“It’s not just shipping, it’s also manufacturing,” said Dr. Ayalla Ruvio, an associate professor of marketing at Michigan State University. “There are a lot of things that are made from oil, so everything will get more expensive.”
“I looked at foil -- which is the pretty paper you see in the bottom of plants -- and the price of those have almost doubled,” Schmidt said.
Fortunately there is good news. Experts don’t predict the increase in price to last forever.
“Increase in prices, probably at a certain point will result in decreasing demand,” Ruvio said. “Once you see decrease in demand, inflation will subside and prices will start going down. There is hope. I just don’t know how far the horizon is. That is a question for Putin. He will know.”
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