June 24, 2011
A quick look at the statistics of this blog show that the gas price article and how that pertains to food truck businesses is one of the most popular posts. So I figured it was time to provide a little follow up. When I first wrote that post, gas prices were rapidly climbing and experts were predicting that prices would soon top $4 at the pump in some areas. I’m not sure about gas prices where you live but in this neck of the woods all gas prices – even for regular unleaded – are over $4. Ouch! That can have a huge impact on food truck businesses which use a lot of gas to get in front of their customers.
I did some research to see what experts in the industry were saying about gas prices for the summer and came across this Economic Outlook from Kiplinger’s that was updated at the end of May. It’s a bit of a sobering read especially with phrases like “Gasoline prices, which accounted for half of the 0.4% rise in the Consumer Price Index in April, will linger around $4 a gallon through the summer. Gas prices are up 33% over the past 12 months. Meat and poultry are up 7.6% and dairy products 6.3% over the past year. In just the past three months, prices have risen by 7% or more annualized for airfares, new cars and trucks, used cars and trucks, and medicines.”
However, it’s not all doom and gloom. The article does say that the US, if not headed into a fast recovery, is at the very least slowly – every so slowly – rebounding. Plus, from a gas price standpoint, Kiplinger’s predicts that oil will stay at $100 per barrel which would mean that no large increase in consumer gas prices is predicted through the end of the year. In today’s world I’ll take that as a victory!