Large delivery carriers like UPS, FedEx, Amazon, and even the U.S. Postal Service are now adding surcharges to offset the rising cost of delivery. Now, those fuel surcharges are trickling down to local businesses that rely on cars for their operations.
Haresh Pahilwani says higher gas prices are eating away at his profits as an Uber and Lyft driver. He’s experiencing sticker shock at his local gas station.
“$3.99 a gallon, right here. In February, the same gas station charged $2.98,” Pahilwani said.
He reports spending nearly $20 more on each fill-up. Since he typically drives from his home in Homestead to Miami and the two major airports to give rides, he says the trips need to be worthwhile.
“If there’s a surge, I make it worth it, but otherwise I’m making exactly the same money while spending more on gas,” Pahilwani explained.
As an electrician, Johnny Farias is constantly on the move to his next job site. To cover rising transportation costs, he’s adding $10 to $15 to every job.
“I try not to add too much because then you might start losing customers. But I usually charge at least $10 to $15 per customer. That way, if the job is close, it makes up for the longer trips,” Farias said.
Xavier Miranda, owner of Top Florida Roofing, recently received notice from one of his suppliers that a $60 fuel surcharge will be added to each order, effective immediately. He says there’s no way around it other than passing the cost onto customers.
“It’s across the board. I’ve gotten that from all my suppliers, wherever I go,” Miranda said.
Pahilwani notes he gets some gas money back through rideshare apps that partner with local gas stations, but the current price per gallon is eroding that benefit.
“It’ll only save us a dollar, maybe a dollar fifty. But when gas was $2.98, we were better off,” he said.
Farias and Miranda say they can’t add the surcharge to any contracts signed before gas prices started climbing. Farias, who typically doesn’t charge for house calls or estimates, says if prices keep rising, he may have to start charging for every trip he makes.
