Gas price increases take their toll on local transportation business
NASHVILLE, Tenn. (WSMV) -Tennessee gas prices are on the rise, and some say as the tension between Russia and Ukraine continues, numbers at the pump will keep going up. According to AAA, Tennessee’s gas price average is now 25 cents more than a month ago.
“The gas station right next to me this morning was showing $3.60 a gallon. If nothing is done soon, it will be close to over $4 a gallon,” said Salman Hanif, Owner of Nashville Chauffeur Inc.
Hanif has owned his transportation company for many years. He says a few months ago, his drivers could fill a tank with $45 after a six-hour job. But now, some are paying $75.
“Everything is going up and up. I am having to navigate through all of these scenarios every day trying to still survive and make some profit,” Hanif explained.
Dr. Daniel Smith, MTSU Professor of Economics & Director of the Political Economy Research Institute, believes a decrease in gas prices will depend on how quickly the conflict can be resolved.
“If it ends up being wider than it currently is and it gets prolonged, then we can certainly see gas prices get up to that level,” Dr. Smith stated.
Dr. Smith also says another concern is the impact on global supply chains.
“In America, the shutdown of the Keystone pipeline construction and the Line 5 pipeline in Michigan, while people had their arguments back and forth on whether that was a good idea or not, it certainly hampered our energy independence making us more susceptible to shots like this,” Dr. Smith said.
While Hanif fears more increases, his company is trying its best to keep things affordable.
“I’m compelled. I cannot take a loss. But I also understand clients’ point of view,” stated Hanif.
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