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The Pinch of the Pumps

Date: 04/28/2006 | Category: Business | Author: developers

The Delaware News Journal has a great article on the pinch Small Businesses are feeling in the months of soaring gas prices and everytime we believe there is relief in sight, the prices go up once more.

As pump prices continue their unchecked climb, Delaware’s small businesses — and, ultimately, consumers — are finding that fuel costs are only the first painful symptom in a cascade of economic effects. Profit margins are shrinking as operating costs in some cases have doubled.

Businesses already are raising their prices — from landscaping services to hotel rooms — and may hike them further. Others say they may be forced to scale back plans to expand.

But even as higher pump prices boost costs for everything from shipping to supplies, from plastic goods to carpeting, a more optimistic view also is emerging.

Even stay at home businesses are being affected.

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