Kitsap County is located in the U.S. state of Washington. As of the 2020 census, its population was 275,611. Its county seat is Port Orchard,and its largest city is Bremerton. The county was formed out of King County and Jefferson County on January 16, 1857, and is named for Chief Kitsap of the Suquamish Tribe.
Gas Prices and Inflation: Why are Gas Prices Rising?
According to the U.S. Energy Information Administration (EIA), the price of retail gas includes four main components:
• Crude oil costs
• Costs of refining and profits
• Marketing and distribution costs and profits
• Taxes
The EIA reports that retail gas prices peaked during the week of March 14, with numbers representing a 22% increase since the week of February 21.
In response to Russia’s invasion of Ukraine, President Biden imposed a ban on Russian oil imports to the United States. However, gas prices had been rising even before Biden took office due to growing demand, financial strains on oil companies and new drilling.
How are fuel prices affecting Small businesses?
Demand destruction, or the level at which high prices influence consumer behavior, from surging fuel costs might not have set in yet on a wide scale, but the impacts are filtering throughout the economy.
Higher prices at the pump mean not only less spending money in consumers’ pockets but also expanding costs for companies, some or all of which will later be passed along to consumers.
- Fuel costs and the harm they could cause to small business employment.
The high cost of fuel could cut into the currently hot job market. If fuel prices make it challenging for businesses to make ends meet, and other cost-cutting measures are insufficient, small companies will likely have to reduce staffing levels through layoffs or reduced work hours.
- Gas prices could impact payroll expenses.
Increased gas prices may force entrepreneurs to pay workers more. Why? Employees who have to spend more to commute to work will expect their employer to pick up the cost. Also, if they’re feeling stressed out making ends meet, people will likely demand higher pay.
- Rising Gas Prices Lead to Increased Operational Costs
As fuel prices increase, it’s likely your business will have to absorb the added costs. Increasing costs to the consumer will be necessary for Black.
- The Big Picture
Ultimately, the effects of rising gas prices have a much bigger impact on the overall economy than simply watching the numbers go up at the pump. It can be challenging for businesses to navigate those waters, but it is possible to find a state of operations that keeps the engine running.