DENVER — Rising oil and gas prices are driving up costs for many small Colorado businesses, not just for drivers at the pump.
According to AAA Regional Director of Public Affairs Skyler McKinley, Colorado gas prices have climbed about a dollar in the past month. As fuel costs rise, businesses that rely on fuel face growing challenges.
“Crude oil has increased. That's significant and getting priced in,” said McKinley.
That spike in crude oil price is being felt far beyond the gas station.
“Crude oil is the foundation of the global economy. As crude oil gets more expensive, everything gets more expensive,” said McKinley.
Industries like landscaping, which depend on transportation and fuel daily, are feeling the pressure. In Highlands Ranch, Gardens in Bloom Landscaping owner Dena Townsend said her business is affected.
“We do consults for customers. I've been from Aurora to Littleton, Highlands Ranch, Castle Rock, and Parker. We don't charge our customers for consults,” said Townsend.
As a result, Townsend has to absorb the rising fuel costs herself.
“That's the price of doing business,” said Townsend.
Alongside higher fuel costs, material costs are also rising.
“Hardscape, anything rock, steel, you're going to get an increase. You will also see your plant materials increase a bit because they're trucking stuff in from different states,” said Townsend.
According to Townsend, even these small increases can quickly add up, which is forcing her to change how she operates.
For instance, Townsend says, "We've kind of had to bring in our scope of where we're going to go. We'll probably stay 13 miles from our base."
Cutting back on travel and switching to a hybrid vehicle are just two ways Townsend is adapting to the higher costs.
“We used our diesel-powered truck pretty much every time I went out to do a bid with my crew. Now I’m using that truck probably 50%, and then using a hybrid vehicle quite a bit. " It's definitely more fuel efficient,” she said.
Looking ahead, experts say those challenges may not go away anytime soon.
“If we are in a conflict in an oil-producing region, it will increase costs,” said McKinley.
