Rising gas prices leave some businesses hurting as they shell out more cash for fuel

HONOLULU (HawaiiNewsNow) – Businesses that rely on gas to operate said the high prices are adding to problems they’re still coping with from the pandemic — like labor and supply shortages.

Nick Smallwood CEO of Courier Corporation of Hawaii said their gas bills are 30% higher than what they were paying three months ago. The company distributes commercial products and supplies.

“We can’t just wake up like the gas stations and put-up new signs showing what the new prices are, and not pass that expense on to our customers,” Smallwood explained. “Our customers usually want anywhere between 10- and 30-days notice.”

Smallwood’s warehouse is in Kalihi and said rising costs are making it a challenge to find committed workers.

“We’ve actually ran ads for several positions, and it’s taken several weeks just to get a response, let alone someone to come in for an interview, and then get hired,” said Smallwood. “And then day one, day two, they take that drive, and they’re less likely to show up on day three or day four.”

Although they’ve had to pass on the costs to their customers, Smallwood said they’ve been very receptive to the struggle.

However, he feels state leaders could take more preventative action.

“And start looking ahead 10 and 15 years for things like this that are going to happen and being prepared for them so that the cost doesn’t always come down to the taxpayer, or the federal government bailing us out with taxpayer dollars.”

George’s Aviation is also feeling the pain at the pump.

George Hanzawa, CEO of George’s Aviation, said they’re paying about $9 for jet fuel.

Hanzawa said one of his planes burns about 10 gallons an hour.

“When you look at our gas usage, and amount of fuel that we run, we could not absorb the costs,” said Hanzawa. “The profit margin on flying is already so low as it is.”

The pilot school increased their rates due to consumable costs, one being fuel and simple things like tires, tubes and batteries.

“Because the demand is so high and the cost, the price is just doubled,” said Hanzawa.

UHERO Economist Sumner La Croix said higher prices are here to stay for a while and encourages the public to plan on paying higher electricity prices.

“Some of those higher electricity prices are already baked in and it’s useful to start planning how people are going to cope with higher electricity prices,” said La Croix. “You know, unplug that air conditioner now.”

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