El costo de la gasolina, casi una pesadilla

When the price of crude oil rises on the international front, gas prices soar for millions of small business owners at the pumps, who are forced to pay more than $4 a gallon in many parts of the nation.

Truck drivers, bus lines, medical delivery companies, gardeners, and even mobile public notaries suffer from these rising costs.

Agustín Hernández has been a Fresno-based gardener for about 34 years.

As the price of gas rose, Hernández, a Mexican immigrant from Oaxaca, tried to pass the fee along to the customers, but then lost eight clients.

Hernández continues the service for about 35 clients. Some have contracted with him for the last 15 years.

On a typical day, Hernández can travel up to 90 miles along with a crew of three -- Michael Hernández, Pedro Velasco and Alejandro Tovar -- in two battered pickup trucks, each with a utility trailer in tow.

"The gas pricing affects my business pretty bad, because we use a lot of it everyday. Before (two years ago) we'd spend about $150 a week, but now we spend about $350," said Hernández, who said he also relies on weekend income generated from his norteño music band, Los Rayos del Norte.

Crude-oil costs increased by more than 76.5 percent from December 2003 to May 2007. Since then, the cost of crude has risen an additional 93 cents a gallon and on March 13 reached an all-time high of more than $110 per barrel.

Hernández has considered using electric-powered tools, but says the work has to be done fast. And the power must last all day.

A flexible truck driver

Six years ago, when Nelson Peraza started to deliver loads in his own truck, he never imagined paying more than $4 for a gallon of diesel.

In 2002 he only paid 86 cents.

"There have been high prices in diesel but the price per trip has not increased," said Peraza, who is originally from El Salvador and resides in Modesto. "I spend between 50 to 100 gallons daily, that equals $150 to $300 a day in gasoline alone. That is a high amount, pretty much all the profit goes for gas."

Peraza, 42, said that he only drives his truck in the area four months a year, seven days a week.

"It's just that they pay a little better during the agricultural season and if I move it all year round, the pay for trips is even worse.

"Before, there was enough profit with the low price of diesel so that one could save money," he said. "Now, it is $100 less that I will have a day."

He also believes that the only thing that has saved him from bankruptcy is that he is single and has no kids.

Even then, he has to make modifications to his life in order to survive. "I have to make cuts. Six years ago, I could travel the rest of the year and be in my country with my family. I've had to cut all of that."

Peraza said he will work as a driver for a company if the high prices of diesel don't allow him to continue to be independent.

The general sub-manager of the International Monetary Fund (IMF), John Lipsky, said that the actual price of petroleum will reduce the growth of the world economy.

Lipsky made the observation on Monday, as he spoke at the International Energy forum that takes place in Rome and where 500 representatives from 74 countries, 30 oil companies and 14 international organizations participate.

Optimism first

Jennifer Olivera, 32, of Manteca, is owner of Notary Plus More. Olivera drives around all day throughout the San Joaquín Valley, the Bay Area and Northern California as a mobile notary public and Spanish-language translator.

She said the rising gas prices are affecting her business greatly, as the cost to fill up her tank continues bringing down her profits.

"I don't have a choice, I have to continue doing my work," Olivera said. "Meanwhile, it's killing me, because I'm making less money."

Olivera used to spend no more than $300 per month for fuel, but now spends up to $500 per month.

"That's a huge jump for me, because I'm the only one making income in the house," said Olivera, a single mother of four.

She has had to pass the cost on to her clients, increasing her notary prices from $15 to $20 per service.

"It's a domino effect," she said.

To stay afloat financially, Olivera is doing more local work to save on fuel costs. She is also cutting down on personal costs, personal driving and is paying bills online.

"I'm not worried. I'm more hopeful that it's going to come back to a decent price."

Not profitable to be a taxi driver

In the capital of the state, José Ramírez, a 46-year-old taxi driver also has a story to tell.

"The situation is critical for all taxi drivers," said Ramírez, originally from México City. "On one side there are the high prices of gas and on another there are a lot less clients due to the fact that people don't want to spend on taxis."

On average, Ramírez said he is down between $500 and $600 a month.

In order to make a profit as a taxi driver in Sacramento, Ramírez said there should be at least a 40 cent increase per mile traveled. The actual fee is $2.40.

Also in Sacramento, José Luis Rodríguez, owner of the La Purísima bakery on the west side of the city, said he has been forced to cancel bread deliveries due to the current price of gasoline; it is no longer a lucrative business.

Out of the eight bread deliveries he used to do daily, he now does five; that way he uses only one van instead of two.

"With gas at almost $4 per gallon it is nearly impossible to do business; all the profit that we would make practically goes entirely toward gas," explained Rodríguez.

California is the fifth largest economy in the world; it is a state that functions based on energy. Every day, Californians spend $22 million on natural gas, $82 million on electricity and $82 million in gas and diesel.

In addition, approximately half of the energy that is consumed in the state is from transportation.