High gas prices hit businesses, charities hard
COLUMBIA, Mo. (KMIZ)
Businesses and not-for-profit organizations are starting to feel the pressure as gas prices continue their climb amid Russia's invasion of Ukraine.
According to AAA, the national average for a gallon of gas was $4.32 on Monday. Last week the average was $4.06.
Drivers in the U.S have seen a 26-cent-per-gallon increase in the past week.
In Missouri, the state average for a gallon of unleaded gas was $3.84 and in Columbia, the average was $3.99.
Businesses that rely heavily on delivery and transportation are feeling the pinch, and long periods of high gas prices will affect the cost of doing everyday business.
Many trucks that deliver food and other goods to businesses run on diesel fuel -- which averaged $5.31 per gallon on Monday.
The Food Bank for Central and Northeast Missouri is paying up to three times more for transportation costs, a spokesperson said Monday.
Katie Adkins, Director of communication and Marketing with The Food Bank of Central and Northeast Missouri says the pandemic and the increase in gas prices is driving up the group's transportation cost. The costs are based on food delivered which includes the price of the food and transportation and that price can vary depending on where the food is coming from.
"We might have seen a truck load come in at $28,000 in some cases depending on where that truck load is coming from and what it is containing it might be up 180%." Adkins says.
The Food Bank has 24 trucks in it's own fleet that distributes food and they also pay freight on hundreds of trucks that come and go delivering food to the food bank each month.
Adkins said, "in February of 2022 we had our fleet drive 25,000 miles."
To break down the increase in cost pre-pandemic to now, in 2019 the cost of macaroni and cheese was $19,590 and the projected truck load cost for macaroni and cheese in 2022 is now $26,830, which is a 37% increase.
The cost of inflation is affecting the amount of donations that food bank is receiving.
"So we do have to buy more food than we used to as well." Adkins said.
Even with the increase in prices Adkins says that The Food Bank of Central and Northeast Missouri will continue to provide food at no cost to their partnering agencies to help those in need.
Uber said Sunday that it will add a fuel surcharge on fares and deliveries in the U.S and Canada. Users taking trips will now pay a fee of 45 cents to 55 cents per trip and Uber Eats deliveries will now include a 35-to-45-cent surcharge. The company says the fees are temporary and will go to drivers who are responsible for paying for the gas they use.
AAA recommends slowing down, driving the speed limit and using the cruise control on the highway to help maintain a constant speed and save fuel.
Experts say with summer around the corner gas prices are not likely to drop anytime soon.
Check back and watch ABC 17 News at 5 and 6 for more on this developing story.
