Ann Arbor Area BUSINESS MONTHLY magazine brings the reader the latest business news and information important to the businesspeople in Washtenaw County. Each month articles cover real estate, legal, Internet, employee concerns and the climate of business in the greater Ann Arbor area. There is news about company employees and feature articles on local businesses. We cover business news from Ann Arbor, Chelsea, Dexter, Manchester, Milan, Saline, Whitmore Lake, and Ypsilanti.
High Gas Prices Prompt
New Business Strategies
By Mark Ziemba
It doesn't take a rocket scientist to know that the increase in the price of gasoline is painful to the pocketbook, and not just the consumer's. Businesses are suffering too, especially those that depend heavily on gasoline to conduct operations.
From 2007 to 2008 the average price for regular gas jumped by nearly 37 percent, and for diesel gas by 51 percent, according to the U.S. Department of Energy's Energy Information Administration. The government can explain this, and several area businesses share how pain at the pump is changing the way they operate.
The High Gas Price Story
"The story behind gasoline prices is crude oil," says Energy Information Administration Senior Economist Tancred Lidderdale.
That's because crude oil currently makes up 75 percent of the price of regular gas, and 64 percent of the price of diesel gas. The price per barrel of West Texas Intermediate crude oil this June was nearly twice what it was last June. A high growth in demand has stressed supply, driving up the price of crude oil.