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Rising gas prices strain travel-dependent businesses, agencies

Companies weigh higher mileage reimbursement, price increases for customers
Jackie Castillo fuels on Friday at the Circle K station in Durango on north Main Avenue in Durango. The average gas price topped $4 per gallon nationwide Friday. (Jerry McBride/Durango Herald)

Rising gas prices are affecting drivers nationwide, but La Plata County businesses and governmental agencies that rely heavily on driving ‒ such as delivery and transportation services ‒ could be hit hardest.

Jessika Loyer, owner and founder of Durango-based Lucky Services, which makes site visits across the region to provide customers with cleaning and errand services, said some employees have raised concerns about the rising fuel costs.

“We’ve had a number of cleaners and errand runners express concerns about taking those farther jobs due to fuel costs,” she said in an email to The Durango Herald. “If prices remain high, we may need to look at implementing an additional stipend or supplement to support our team, but that’s still to be determined.”

Lucky Services pays employees the federal mileage rate for travel outside city limits and bills mileage fees for jobs beyond its service area, Loyer said.The average gas price topped $4 per gallon nationwide Friday,

The federal mileage rate increased 25 cents early this year to 72.5 cents per mile, which initially helped but has lost impact as gas prices continue to rise, she said.

“We are definitely feeling the impact,” she said. “It’s becoming more of a burden, especially for jobs that require longer drives – areas like Purgatory, Cascade and other outlying locations.”

Loyer said she hopes the federal mileage rate will adjust if high gas prices persist, and that the business is “adapting as needed.”

Gas prices have climbed since the war with Iran began in late February, with the national average reaching about $4 per gallon last week. As of late March, shipments through the Strait of Hormuz, a major global oil route, remained disrupted, driving higher prices at the pump.

A gas station employee at Marathon on Main Avenue told The Durango Herald in mid-March that prices rose by about $1 in a week.

Daren Caldwell, with Animas Transportation, said he has not yet raised prices for customers, but he may need to depending on fuel costs and competition. He is charging about $4 per mile, which is on par with his competitors.

Gas prices have risen as a result of the war in Iran. (Elizabeth Pond/Durango Herald file)

“I don’t want to be more expensive than anybody else,” he said.

The company raised prices several years ago when gas prices went above $4 per gallon for a prolonged period, Caldwell said. If another price increase becomes necessary, the company would likely raise rates by 25 cents per mile.

“If we do anything, it’s going to be $4.25, and I don’t want to do that because it’s a lot,” he said. “That’s a big jump, you know? It kind of depends on how long this goes on.”

A slow spring break meant fewer customers ‒ and fewer miles driven ‒ which could offset higher fuel costs for Animas Transportation. But the company will not know for sure until its March fuel expenses are processed in mid-April.

“I’m hoping, probably like everybody else, that once all of this winds down things will go back to semi normal,” he said. “But you know, prices will never go back to where they were. ... $2.43 was the low I remember.”

Nationally and in La Plata County, corporate delivery platforms like Uber, Lyft and DoorDash have introduced temporary fuel relief programs for drivers.

The average gas price topped $4 per gallon nationwide Friday, but at the Speedway at 20th Street and Main Avenue, the price was $3.79. (Shane Benjamin/Durango Herald)

Several programs – including those from Uber, Lyft and DoorDash – require drivers to sign up for debit or credit cards offering cash back on fuel purchases.

DoorDash is also offering a temporary weekly fuel payment of $5 to $15 to its drivers based on miles driven, according to a company news release.

Businesses are not the only ones affected. Durango School District is focusing on “doing more with less” to continue operating its fleet of 33 gas-powered buses, including 19 that run on diesel, said Karla Sluis, spokeswoman for the district.

“Like many districts, we are beginning to feel the impact of rising fuel costs,” Sluis said in an email to the Herald. “ … While we have not yet seen the full effect reflected in our invoices due to timing, we anticipate an increase of roughly 35% in fuel expenses in upcoming billing cycles.”

Prior to the recent gas spike, the district spent about $4,500 per week on fuel; the district now estimates that cost to rise to about $6,000 per week, Sluis said.

“We are closely monitoring these trends and will factor updated fuel projections into our budgeting for the 2026-27 school year,” she said.

The district had one electric bus in operation as of late March and plans to add three more by fall 2026.

“As we plan ahead, we remain focused on doing more with less ‒ carefully managing resources while continuing to provide safe, reliable transportation for students across our large and rural community,” Sluis said.

The Durango Police Department, which operates a fleet of 50 vehicles, including 15 patrol cars, had not yet felt the effects of rising fuel prices as of early April, spokesperson Amanda Garrison told the Herald in an email Thursday.

Fuel is purchased in bulk by the city’s Fleet Department and billed to individual departments, including DPD, Garrison said.

DPD used $4,197 in fuel for the month of March and $4,682 in February, Garrison said. Cmdr. Nick Stasi said he was unsure whether fuel was prepaid before the recent price increases.

The DPD has been transitioning its patrol feet to hybrid vehicles, Garrison said. It currently has 19 hybrids and two electric vehicles and plans to add five more hybrids, she said.

epond@durangoherald.com