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Gas hikes cut wiggle room for business.

Article Excerpt
Armando Freire has watched local diesel prices climb about 35 cents during the last couple of months.

Freire, president and owner of Dimex Freight Systems Inc. of San Diego, hasn't passed on the price to patrons yet.

"Customers rant and rave and pout and stamp on the floor," he said. "Most of this comes out of our bottom line."

The trucking industry runs on a 3- to 12-percent profit margin, depending on the company, Freire said. That doesn't leave much wiggle room, and - fuel is a large expense for truckers.

Several factors are working against businesses right now -- higher workers' compensation and liability insurance payments and a slowdown in the economy.

At least some expenses, such insurance payments, can be spread out over a year, Freire said. "Fuel is a cost you pay up front."

Survivors of the state's energy crisis say today's high gasoline prices feel like dejk vu.

And like a couple of years ago, some fear big companies may be gouging the public.

"It isn't collusion as much as companies not...

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