In the last few months, millions of Americans have seen some of their financial burdens ease a little bit thanks to the fact that gas prices have fallen significantly. In some parts of the country, the price per gallon is now down below $2 for the first time in several years. Beyond the average consumer, though, it seems many small businesses are also feeling the positive effects of this change.
The fact of the matter is that millions of businesses across the country may have to pick up a gas bill at least occasionally, and those that rely on trucks, vans, or SUVs to deliver their products likely know all too well how difficult it was to pay for that necessary expense when the per-gallon price was near or even above $4, according to a report from the Associated Press. And for these companies especially, the ability to save potentially thousands over the course of several months on lower gas prices is likely to be seen as a huge bonus.
“You always feel like you’re being robbed when it’s $4 a gallon,” Tony Lamb, who owns a food truck franchising company, told the news organization. “When it’s $2, you feel like you’re stealing it.”
While some may choose to devote a healthy portion of that saved money to several different aspects of their companies instead, other owners are using the opportunity not to shrink their fuel budget, but rather expand their operations in other ways, the report said. For instance, with the cost of regular gas down some 45 percent from the highs observed over the course of 2014, many are now delivering to customers or clients that are located farther away, and consequently expanding the reach of their firms overall.
What’s the savings?
Depending on how much companies budget for gas in the first place, and how much the cost per gallon has fallen in their areas, it’s possible that companies could be saving as much as a few hundred dollars per month thanks to the current conditions, the report said. Depending upon how long these lower gas prices last, that’s likely to be a huge boon to companies throughout 2015.
The fact is that many owners who want to save a little money throughout the year may have another way to do it: finding more affordable small business insurance. By cutting costs for, say, liability insurance, they may be able to save thousands annually.