Rising gas prices impact trucking industry, consumers

Yellow Semi Truck Travels On Interstate In Springtime
Posted at 3:00 AM, Mar 09, 2022
and last updated 2022-03-09 20:16:08-05

NAMPA, Idaho — In Idaho, 72% of all products are delivered by truck, according to the Idaho Trucking Association. As gas prices rise and these costs ripple through the economy, they bring more than just pain at the pump.

Integrity Auto Transport is a treasure valley small business.

"We own about ten trucks. We transport anything from frozen goods to dry goods, anything that'll fit on an open step deck," Owner Don Curry said.

Rising gas prices directly affect their bottom line.

"When it comes to hauling freight, fuel is our number one expense," Curry said.

When companies pay more for fuel, they have to raise rates, meaning those costs, get passed on to the consumer.

Allen Hodges, the president of the Idaho Trucking Association said many companies already raised rates because of inflation, "now they're going to have to raise rates again."

Curry explains why companies have to adjust rates because of gas prices so quickly.

"If you don't understand what it costs for you to operate and then fuel prices rise and you don't adjust, you could lose money quickly," he said.

Then the chain reaction continues.

"You're gonna see more food increased prices, clothing prices, everything that we consume," Hodges said.

Curry said this especially impacts small businesses like his.

"It can get to the point where, as a small business, you have to make a decision, am I going to continue or am I going to close my doors?" he said.