Rising fuel prices squeeze businesses, customers

The average price Saturday for regular unleaded gasoline and diesel in the Rio Grande Valley was $3.57 and $4.07, respectively, based on The Monitor's Gas Watch, an unscientific daily survey of prices at area gas stations. That compares to $2.74 for regular and $2.62 for diesel one year ago - a 30 percent increase and 55 percent increase, respectively.

WESLACO -- With gas prices rising sharply, some businesses are finding it difficult to cope with the higher cost.

For businesses in Weslaco, the ballooning cost of fuel means higher prices for customers and careful consideration for company travel.

Robert Robles, a Weslaco native and owner of Medical Innovations Home Health Care, said the rise in gas prices has taken its toll on the way he operates his business.

Because his employees rely so heavily on gas to serve clients, the cost of running his business has skyrocketed, he said.

"Our fuel expenses have gone up about 30 percent (in recent months)," Robles said. "Our projected expense rate for 2008 was about $70,000; now it's gone up to about $95,000 dollars."

Robles said gas prices affect his business heavily because no one at his agency remains stationary.

"No money is made in this office," he said. "Our money is brought in out there (in clients' homes). I have representatives as far as Rio Grande City who cover wide areas, so we have to be a little more frugal with our routes."

Robles said other than frugal spending and limiting travel miles, there is little businesses can do to curtail the effects of rising fuel costs.

"You basically have to bite the bullet," he said. "We tell the nurses to be sure and call the patient before they head out to be sure they're going to be home and we tell the reps not to plan something in Mission, for example, if they're going to need to drive all the way back to Weslaco right after."

Eddy Barroso, manager of Rental World of Weslaco, said high diesel prices are causing profits to shrink at his business.

"Right now it's killing us," He said. "It's causing us to raise our delivery prices, which customers really don't go for. A delivery that once cost $25 can cost up to $75 or $100 now depending on how far we're going and what we're taking."

Barroso said increasing fuel costs have left little wiggle room for price negotiation with his customers.

"We've had to make quite a bit of adjustment," he said. "Sometimes we would try to work out a deal where we don't charge delivery depending on the order, but now, for the most part, a local delivery is going to cost you $50 whether you order 10 chairs or 100 chairs. Local deliveries used to be $25."

The manager said consumers are trying their best to cope with the added costs passed their way.

"They don't necessarily rent less," he said. "The customers are aware that the equipment needs to be returned full of fuel. They don't generally use much fuel and they really don't complain about it."