Lafayette

Mar 2, 2011 3:37 AM by Jim Hummel

High Gas Prices; Good & Bad News for Local Businesses

In the past week alone, gas prices have risen 23-cents in Louisiana, but your everyday drivers aren't the only ones feeling the pain at the pump. Some businesses, which run on fuel are finding it difficult to stay afloat. Take Dixie Cab company in Lafayette, where the spike in gas prices is starting to impact the bottom line.

"The gas prices just dug into my profit big time, it's a really serious problem," said Joe Yousef, owner of Dixie Cab.

Raising fares is a last resort for Yousef. In his experience that has typically caused a slump in business, but he says if gas prices reach $3.50/gallon, he'll have no other choice. If the price of gas reaches $5.00/gallon, he may have to consider getting out of the business.

"That would be a disaster," he said.

While Yousef and many motorists across Acadiana are finding it difficult to deal with the higher prices at the pump, some businesses are actually seeing a spike in business because of the higher gas prices.

"Everybody's coming in, checking out new bikes," said Megan Arceneaux, of Recycled Cycles of Acadiana, where sales have been up in recent days.

Arceneaux says Lafayette is becoming more bicycle-friendly, and for those with a short commute to work, a bike could be the perfect way to save on commutes that are becoming more and more costly due to higher gas prices.

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