Pump pain: Companies try to cope

Rising fuel prices squeeze many, from florists to cabbies

‘‘I don’t know if that will help cover the costs,” Rice said. ‘‘I’m worried gas prices are going to get worse before they get better. ... We’ve been struggling with the economy overall, not just the gas prices. Flowers are a luxury.”

Two weeks ago, Zimmerman raised its delivery rates by $1 for customers in outlying areas — its second increase in two years. The shop’s delivery rate remained $6 in the city of Frederick but is now as high as $10 for customers in towns such as Myersville.

The price of self-serve, regular unleaded gasoline in suburban Maryland on Wednesday averaged $3.36 per gallon, compared with $3.21 a month ago and $2.81 a year ago, according to AAA. Regional retail gasoline increases on a month-to-month basis ranged from 13.6 percent in New England to 26.4 percent in the West. Wholesale gasoline prices were up some 33.1 percent for the month in the month, suggesting that pump prices will continue rising.

Retail and wholesale fuel prices in March shattered all previous records, and products used in the transportation sector began April with prices up as much as 238 percent from five years ago, according to Oil Price Information Service’s Transportation Index. The Gaithersburg company reports the industry standard of gas prices after receiving pricing information from 100,000 stations nationwide.

Jennifer Sparks, vice president of marketing for the Society of American Florists, said many flower shop owners are feeling the pinch but are handling it in different ways.

‘‘Florists we’ve talked to have been dealing with the increases in fuel prices locally by purchasing more fuel-efficient vehicles and being more strategic with their delivery routes,” Sparks said. ‘‘Many florists are absorbing the increased fuel prices and keeping their delivery charges the same. Others have felt the need to increase their charge.”

Taxi fleet copes withhigh prices, set rates

Like florists, owners of taxi companies, such as Blaine Young, managing partner of City Cab, are also squeezed by rising fuel costs. His fleet must abide by rates set by the city of Frederick, which were last priced in 2004 at $1.60 per mile, with a start rate of $2.40 and $4 for the first mile.

The city has 54 taxicab permits, 44 of which are managed by City Cab, which also has five cab permits from the city of Brunswick and plans to secure more in Thurmont and Emmitsburg. City Cab transports roughly 600 passengers per day, including more than 20 each day to regional airports.

Gas prices have driven up costs for City Cab to between $13,000 and $15,000 per month, but his business has increased, as the rising prices have spurred more riders wanting to save gas costs themselves, Young said. As a result of that demand — as well as Young’s investment in new vehicles and drivers — the company’s revenues have grown 30 percent from six months ago.

Despite the rising gas prices, Young said he prefers that rates remain low so he can service more customers. More drivers are avoiding patrolling streets and instead are positioning themselves at key locations in the city to wait for a call.

‘‘I’m not happy gas is rising, but we’ve been very fortunate that our business has gone up, too,” said Young, who is also a contributing columnist for The Gazette, a former alderman and a radio talk show host. ‘‘My concern is that we’re serving the working class. Whatever I can do to get more people using our service, I’m going to do. ... We’re trying to hold on as long as we can.”

Landscaper desperatefor price drop

Stacey Heard, co-owner of Mowing & Growing landscape business in Monrovia, said that while her 8-year-old company has been adding employees and customers, she worries about the long-term impact of rising gas costs.

Heard tacked on an 8 percent ‘‘fuel recovery” fee last year to offset costs of filling trimmers, mowers and company trucks. She said she now spends upward of $1,000 per month on gas, and that’s likely to increase this summer. But she is reluctant to raise prices further.

‘‘You can’t keep upping the price because you’ll make customers upset,” Heard said. ‘‘You’ll lose your old customers and you won’t get new ones.”

Heard said she realizes that gas costs will probably continue rising, but she has not crafted a plan to recoup her added expenses if gas prices break records again next year.

‘‘That’s a scary thought,” she said. ‘‘We’re just hoping it gets better soon.”

Biodiesel producer eyessoybean, not oil, prices

At least one Frederick business expects increasing gas and diesel prices would to boost its bottom line, but the owners of Chesapeake Green Fuels of Adamstown are more tuned in to other market trends.

Wholesale diesel prices ended last month at an all-time high of $3.29 per gallon, according to the Gaithersburg tracking company, and the average retail diesel price was $4.02 per gallon. The largest wholesale increases of nearly 50 cents per gallon occurred in New England, but every region saw price hikes of at least 42 cents per gallon.

With plans to launch two refineries in Baltimore, Chesapeake Green Fuels expects to churn out between 10 million and 15 million gallons of biodiesel annually and supply the alternative fuel to roughly 250 gas stations in the region.

Co-owner Thomas Butz said the company is less concerned with gasoline price trends and more alert to increasing soybean and feedstock prices, as more corn is produced for ethanol. Biodiesel producers are mandated to use soy-based oils and less grease products such as chicken fat, but the industry is trying to change that to better compete with conventional diesel.

Biodiesel prices fluctuate due to changes in soybean prices, retail costs, taxes and feedstock prices. On average last year, biodiesel was 12 cents per gallon cheaper than petroleum diesel, according to the U.S. Department of Energy.

‘‘Our business model is to offer a lower cost, environmentally sound product,” Butz said. ‘‘If diesel was to plummet in price, it could cause a problem. If it were to double, I could undercut diesel fuel. But if gas prices go up, we still may go underwater. ... There’s a lot of risk in my industry.”