By Peter JacksonThe Daily Northwestern
Companies in Evanston and across the country are being negatively affected by rapidly rising gas prices.
The price of a gallon of unleaded gasoline in the Chicago area hit $3.37 on Monday, up 24 percent from March 26, and 27 cents above the national average, according to U.S. Department of Energy statistics.
“It affects most businesses,” said Jonathan Perman, executive director of the Evanston Chamber of Commerce. “The cost of getting supplies (to businesses) rises dramatically.”
Cab drivers, gas station owners and shop managers are reeling from the heightened prices.
“They’re putting me out of business,” Tahir Mohmmad, manager of the Shell station at 500 Dodge Ave., said of the prices. “If it continues like this, we’ll shut down in a month and a half.”
Mohmmad said higher prices hurt, rather than help, his business. He said his cut of a gallon of gas is 10 cents regardless of its retail price, but that credit card fees, which rise with cost, are eating up his profit. He said he’s now getting as little as one or two cents for every gallon the station sells.
“It’s a highway robbery,” he said. “Even customers are cutting back. No one can afford it at these prices.”
Across town at Best Taxi Service, owner Sam McKinley Jr. applied a $5 surcharge to out-of-Evanston trips in late March to soften the blow to drivers’ wallets.
“Gas prices have been tremendous in more than one way,” he said, noting that ridership has gone down with the warm weather just as prices have gone up. “I’m not one to cry – I’ve been in this business 37 years, and if it keeps up like this, a lot of transportation companies will go out of business.”
McKinley said he doesn’t know what can be done to remedy the situation, but Mohmmad said the government should intervene, either by cutting sales taxes or subsidizing the cost of gasoline.
“It could save our business,” the Shell manager said.
Still, it’s a problem affecting the entire nation, Perman said.
A local solution doesn’t make sense for a national issue, he said.
“What’s quite amazing is that despite extraordinary increases in energy costs, inflation is really low,” Perman said. “It’s being offset by the cost of other things. I don’t know how long that will last.”
However, that synopsis may come as little solace to local business owners.
“I don’t know what the answer is,” McKinley said. “I’m just trying to survive.”
Reach Peter Jackson at [email protected].
