The owner of Gorda by the Sea, the only gas station for miles in Big Sur, charges $9.99 a gallon—it’s as high as his pumps can go. Leo Flores, who has owned the station for 30 years, explains it’s not about price gouging. In fact, he’s worried high prices might drive him out of business.
“People think I’m making money, but I’m not,” he shared. This situation highlights how rising fuel costs are affecting small communities. Recently, gas prices started climbing significantly, largely due to the ongoing conflict in the Middle East, impacting oil supply.
Flores’s gas station operates on generators, which consume five to six gallons of gas every hour. It’s not just the station; his mini-market, cafe, and hotel also rely on generators due to a lack of access to the grid. “When I explain this to customers, they understand why my prices are higher,” he said.
AAA reports the national average for a gallon of regular gas is $4.09, while California’s average is up to $5.86. In Gorda by the Sea, prices average around $6, but Flores’s prices often leave drivers in shock.
He has thought about switching to solar power but worries about the upfront costs. He also relies on regular gasoline deliveries every two weeks along Highway 1. When landslides closed the highway for three years, his business dropped to 10-20% of normal, making it tough to keep the community afloat.
“Highway closures don’t get the same attention as price hikes,” Flores noted. “It’s like everyone blames me when I have to raise prices after the highway opens.”
This situation reflects a larger trend in rural gas stations. As gas prices fluctuate, small community businesses feel the ripple effects. According to a recent survey, 70% of small business owners reported that rising fuel costs have negatively impacted their operations.
Flores’s story is a reminder of the challenges small businesses face in remote areas, where the cost of doing business is much higher than in urban areas. Consumers are often unaware of the struggles behind the scenes.
For more insight into the rising costs of gas and its impact on businesses, you can check out the recent report by the U.S. Energy Information Administration here.
