Gas cost drives up delivery prices

Source: Lansing State Journal
From florist to pizza parlor, it's costing more to make deliveries across Michigan.

That's because increasing gas prices are hitting businesses who are, in turn, passing the costs to customers or scaling back their territory.

"We've got four trucks on the road every day, and gas bills are mounting," said Save Mansfield, co-owner of the Norm Kesel flower shop in DeWitt. "It's not fair to the customers."

Becky Moray, an employee at Sir Pizza on Pennsylvania Avenue, said drivers who deliver pizza absorb much of the increase in gas prices.

The pizzeria's drivers get 8 percent commission on each pizza. The commission is meant to cover the cost of gas.

“Our drivers are complaining, Moray said. “Now they’re at 8 percent. We’ll raise it once gas hits $2 a gallon. We did that last year too.”

Jon Matthews of Sam’s Sorrento Pizza in surburban Detroit’s Utica expects to increase prices just as he did during last year’s gas crisis, when he upped delivery charges from $2 to $2.50 per order. Matthews said Friday he's ready to raise the rate to $3.

Suppliers who bring cheese and pepperoni are passing the higher cost of gas on to him, Matthews said, so he has little choice but to do the same.

“Usually, the people who want the delivery service understand why we’re doing it,” he said.

The price of gasoline, which typically begins increasing around Memorial Day, began climbing last month and in some places has reached $2 a gallon. Relief is months away.

One reason, industry experts said, is speciality summer gasolines. Michigan, with only one functional oil refinery, must rely upon outside sources to meet its gasoline needs.
Source: Lansing State Journal