Gas prices continue to stymie small business growth

Gas prices continue to stymie small business growth

April 5, 2022 0 By Kevin Bessler

Almost two-thirds of Illinois small business owners report experiencing a significant negative impact from high gas prices.

According to Alignable’s Gas Price poll, 62% of Illinois small business owners said they are suffering from high gasoline prices, one of the highest percentages in the nation.

“Prices across the board are really going up, and with the gas prices going up, that is adding insult to injury on top of what else people have been facing through inflationary trends,” Alignable lead researcher Chuck Casto said.

Businesses hit the hardest are transportation-related, but also cleaning services. They rely on their workers driving often long distances to and from clients’ homes or corporate facilities.

Casto said some businesses that you wouldn’t think about are dealing with financial pressures.

“You are seeing it with beauty salons,” Casto said. “On the other end of the scale, accountants are reporting that they are having trouble.”

The poll shows minority-owned businesses are having more challenges with the increase in gas prices, as 74% reported a very significant negative impact on their business growth. However, veterans aren’t far behind with 70% of those businesses also struggling with high gasoline prices.

Another reason that Illinois businesses face higher gas prices than in most states is that Illinois has the fifth-highest gas tax nationally at nearly 40 cents per gallon, according to data from the federal government.

Prices have eased a bit over the past couple weeks, but the average price for a gallon of gas in Illinois is still hovering around $4.50 a gallon. Motorists in Danville, Kankakee and Bloomington-Normal are paying the least for gas in the state, while Chicagoans are paying the most.

Nationwide, Californians pay the most for gas, while motorists in Illinois neighbor Missouri are paying the least.

This article was originally posted on Gas prices continue to stymie small business growth