With the average price of gasoline in Los Angeles County topping six dollars a gallon, it is no wonder that consumers are having difficulty balancing truck financing with rising gas prices. With rising gas prices, everything from lumber to food will be affected by shortages. And with high gas prices, more consumers will need to replace their old vehicles sooner rather than later. But how can consumers avoid having difficulty financing their trucks?
Average price of a gallon of gasoline in Los Angeles County hit a record $6.011
Californians have been paying higher gas prices in recent weeks. California set a new record for the average price of a gallon of gasoline on Wednesday, topping $6.111. That was a jump of nearly $2 cents per gallon compared to the previous week, and $1.224 higher than one month ago. Despite the price increases, California drivers are still paying more than the national average. This has come despite the fact that crude oil is still over $100 a barrel.
This increase is partly due to the global economy. The price of oil fell drastically during the recent influenza pandemic in Mexico and Venezuela. As a result, oil producers put the brakes on production. The resulting shortage led to the spike in gas prices. Even though the supply of oil remains low, the market is tightening up. A recent report from the US Energy Information Administration showed that the capacity of refineries in western states declined by 12% from last year.
Fuel shortages affect everything from food to lumber
The recent rise in gas prices has triggered a spike in prices for everything from food to lumber. Gas prices have hit their highest point in six years, and oil prices are just slightly below that level. In addition to causing price increases, fuel shortages have hampered the distribution of key commodities. While gasoline and oil prices are now slightly lower than last year, shortages in the transportation industry have been a significant cause of increased prices.
The wood industry was hit hard by the pandemic. The shortage led sawmills to reduce their lumber production. The shortage hampered new home construction, as Americans and families in other countries sought more space during the quarantine. Moreover, increased demand for lumber drove prices up. The National Association of Homebuilders blamed the lack of domestic production for the rise in prices. But despite the shortage in the lumber supply, the housing industry and NAHB are continuing to lobby for adequate lumber production.
Impact of rising gas prices on small businesses
Rising gas prices are a big issue for many businesses, from delivery companies to construction companies. Fuel costs are driving up the sale prices of many products and services, but small businesses may be worse off if they increase prices of their goods or services. For example, Uber drivers are forced to increase their prices, and construction companies are relying on large trucks to deliver their supplies. These large trucks burn a lot of fuel.
The impact of rising gas prices on small businesses when financing their trucks is especially significant for businesses that depend heavily on trucks. Experts believe that higher gas prices will be around for some time. However, preparing for a spike is a smart idea, regardless of the timing. There are ways to mitigate the effects of rising gas prices, whether temporary or long-term. Here are some tips to help you get through a tough market.
Options for small businesses to reduce fuel costs
The price of gas is skyrocketing. Demand for the commodity has reached its highest point since 1991. Prices are expected to stay high for the foreseeable future. Increased gas prices immediately hit small businesses with vehicles on the road. Even those without a large fleet of vehicles feel the impact. To reduce these costs, consider the following options. Reduce fuel consumption and increase vehicle mileage. Reduce truck speed. Fuel-efficient vehicles reduce fuel consumption and can improve productivity.