TOLEDO, Ohio (WTVG) – The war in Iran continues to impact gas prices in the U.S. as the national average cracks $4 a gallon, and local transportation services say they’re feeling the squeeze.
Leaders of two local transportation companies say it’s had a big impact these last two months. Black and White Transportation gives roughly 600,000 rides a year, so when the price of gas is added up for each trip, it gets costly. With many clients needing medical transportation, they’re relying on these companies no matter the price.
Leaders with Black and White Transportation say they specialize in nonemergency medical transportation, which makes up 85% of their clients.
“Taking our clients to dialysis, cancer treatment, doctors’ visits, and addiction recovery appointments as well,” said Jenn Schacht, director of community engagement at Black and White Transportation.
These accounts are based on a contract with rates locked in roughly a year in advance.
“Gas prices went up, but we still need to fulfill the obligations that we have already had,” Schacht said.
Black and White hasn’t raised their rates for any of their services, which means this additional cost eats into its profit margins.
Black and White isn’t the only company feeling the squeeze.
“Since the beginning of March, it’s been up about 30%,” said Ghadir Kahla, owner of Golden Care Transportation.
Kahla says her company has had to raise its rates but is also eating some costs. With clients in need, she says they can shop around for cheaper fuel options, but there isn’t much she can cut back on.
“This is more than a business, you know? You want to be sure. These clients are relying on you to get them to and from their appointments,” Kahla said.
With the future of prices still uncertain, Kahla says she’s taking it day by day.
Schacht with Black and White says they plan for fluctuating prices, but down the road, it’s possible they’ll have to make some difficult pricing decisions.
“As we negotiate contracts in the future, that’s going to be something we have to look at, absolutely,” Schacht said.
Schacht says another way they’re able to keep some of their costs low is by having their own mechanics to fix any vehicle issues. She says keeping as many costs controlled as possible helps in the long run.
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