LANSING, Mich. (WILX) – Russia’s invasion of Ukraine is driving up gas prices, but it might not just hurt you at the gas pump.
Companies are forced to raise prices to compensate for the rise at the gas station.
“Everyone is worried about what’s going to happen,” said Jim Schmidt, co-owner of Hyacinth House.
Schmidt worries about the price of gas because part of his business depends on it. Since the Russian invasion and gas prices have skyrocketed, Michigan residents are paying an average of 87 cents more than they were in March 2021. As the price goes up, so do the price of utilities.
“Our delivery cost has gone up a bit,” Schmidt said. “We only increased our deliveries by a dollar.”
Co-owner of Hyacinth House for 47 years, Schmidt has almost always driven a company car and never had to worry about gas prices, but since selling his business to an employee, he said he he swiped his own card and felt the impact.
“I’ve noticed that when I’m fueling up my personal car, I take a second to look at it and I’m a little surprised,” Schmidt said. “It’s a real expense for people.”
In addition to paying extra to fill their tanks, people also have to deal with the rising cost of materials.
“It’s not just shipping, it’s manufacturing,” said Dr. Ayalla Ruvio, associate professor of marketing at Michigan State University. “There are a lot of things that are made from petroleum, so everything will get more expensive.”
“I looked at the foil — which is the nice foil you see at the bottom of the plants — and the price of those has almost doubled,” Schmidt said.
Fortunately, there is good news. Experts do not predict that the price increase will last forever.
“Rising prices, probably at some point, will cause demand to fall,” Ruvio said. “Once you see a drop in demand, inflation will come down and prices will start to come down. There is hope. I don’t know how far the horizon is. That’s a question for Putin . He will know.”
Related: The number of refugees exceeds one million; Russians besiege Ukrainian ports
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