How far will gas prices go up?

Discussion in 'Lawn Mowing' started by dreamertex, Jan 23, 2003.

  1. dreamertex

    dreamertex LawnSite Member
    Posts: 24

    Any thought about gas prices this season if the dreaded war breaks out. News has speculated that prices of gas will possibly double or triple if Saddam blows his field up or attacks neighboring countries. Is anyone putting anything into their contracts to cover this possibility. Major trucking companies have an automatic price adjustment (plus and minus) according to the current price of fuel to protect themselves. I realize that we do not spend a great deal on fuel but it does add up over the season. Just a thought?:confused:
     
  2. 1grnlwn

    1grnlwn LawnSite Bronze Member
    Posts: 1,261

    They will rise untill profits start to fall.
     
  3. jkkalbers

    jkkalbers LawnSite Member
    Posts: 144

    An expert on CNN said prices will start to drop once we go to war. He said it is the speculastion of war and the not knowing that is causing prices to rise. This is not a direct quote but sums up what he said.
     
  4. Lawn277

    Lawn277 LawnSite Member
    from Iowa
    Posts: 74

    Gas Went up here by .14cents yesterday, Iam guesing they will double by summer. Strange thing though, the last thing I read said 90% of the fuel we use here doesnot come from overthere.
    Last year we started charging a fuel fee on Dump truck delieveries. It was posted as a fuel surcharge on the bill. As for the mowing contracts we just left those the same. this year there will be a clause written in the contract that if fuel prices exceed 2.00 per gallon you will be assessed a fee of 3%. I hope that will cover it

    thanks
    Rick
     
  5. SLS

    SLS LawnSite Bronze Member
    from Mars
    Posts: 1,540

    The war?

    When you see the fuel prices hit the roof.... thank Venezuela!
     
  6. mklawnman

    mklawnman LawnSite Senior Member
    Posts: 634

    Ive heard by like May or June they will have the summer gas out that the prices should drop by then. From what i heard from my Economics teacher that right now the price of gas is up .20cents because its considered war gasoline that the markets are worried with an Iraqi war.
    Hopefully this war will start and finish in February like they have been telling us and the prices should go down after the war just in time for us lawn care people.
    Matt
     
  7. Lawn Dog2001

    Lawn Dog2001 LawnSite Bronze Member
    Posts: 1,027

    I have not yet. But this is something we should all be thinking about. Perhaps a $1 gas surcharge per mowing,if a gallon of
    regular gas gets to a certain price.
     
  8. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Posts: 1,762

    Gas isnt to bad here yet. I am generally getting gas for the mowers at or around $1.34 and diesel for the mowers and trucks @ $1.35
     
  9. Barkleymut

    Barkleymut LawnSite Bronze Member
    Posts: 1,117

    During the Persian Gulf war gas went from $1.00/ gallon to 1.35/gallon. Gas is around 1.33/gallon here now so I would guess around 35 cents more. BTW My new 6 Liter V8 Chevy sure does like to drink it up.
     
  10. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I don't see the war affecting gas prices that much. If they did though my customers already know that when gas prices go above $2.00, if they ever do, their rate will go up as well. That is one thing that I put in writing for the customer about the gas prices.
     

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