Home Environment Impact of Rising Gas Prices on Michigan Boating and Businesses

Impact of Rising Gas Prices on Michigan Boating and Businesses

Impact of Rising Gas Prices on Michigan Boating and Businesses

On a sunny afternoon in Dexter Township, Michigan, Malik Amine and his brother prepared their family pontoon boat for the summer season. With the cover removed and Portage Lake shining in the sun, they faced a crucial choice: the amount of gasoline to put in the pontoon’s 52-gallon engine.

Like motorists, recreational boaters are experiencing the effects of the Iran war. Although U.S. gas prices have recently decreased, a gallon of regular gas still costs 34% more than the previous year, according to AAA. Diesel fuel has risen by 53% compared to last year.

Ethanol-free gas, preferred by many boaters, classic car owners, and lawn mower users, costs between 20 cents and $1 more per gallon than regular fuel, as reported by the National Association of Convenience Stores. Near Portage Lake, 60 miles west of Detroit, one station sells ethanol-free fuel at $7 per gallon. Amine decided not to fill the boat’s tank ahead of Memorial Day weekend. “The cost is significantly higher than last year,” Amine noted. “It’s probably smarter to fill it based on necessity, considering the uncertain duration of the conflict.”

According to the National Marine Manufacturers Association, which represents the boating industry, 100 million Americans partake in boating each year, supporting an industry valued at $230 billion annually. Their discussions with boaters suggest most will continue boating this year, though some may alter plans due to gas prices. “Some people said they would adjust their behavior,” stated Ellen Bradley, the association’s chief brand officer. “They may anchor more or spend more time at the dock.”

Neil and Kathleen Donohoe live on a 50-foot diesel-powered boat named Granuaile, in honor of Grace O’Malley, Ireland’s pirate queen. They’ve traveled the East Coast and to the Bahamas over the last seven years. While maintenance is usually their biggest expense, recent fuel costs are substantial. Using marine apps, they find the cheapest gas. “It’s not stopping our cruises, but it makes an impact,” Neil said.

This summer, the couple plans to remain in the Chesapeake Bay area instead of heading north. They’ve visited Maine and Canada before and prefer not to go again until gas prices drop. “It feels excessive to spend that much when many are struggling,” commented Kathleen.

Gas prices are also affecting boating businesses. Seattle Sailing Club’s fleet typically uses wind power but has gas or diesel backup engines. Lindsey Brown, the club’s office manager, revealed their fuel bill increased by 10.7% since the war began. Diesel prices rose from $6.50 to $7.99 per gallon between April and late May.

“We’re entering our peak season,” Brown added, “so price changes may significantly impact our business.” Living in the marina, Brown noted an added fuel surcharge to her wastewater pumping service.

The busy season has also arrived for Melissa Kunnert, owner of NautiMi On the River, an ice cream shop near Portage Lake. She rents out a tiki-themed pontoon boat and hosts evening cruises for $50 per person post-Memorial Day. Despite rising fuel costs, Kunnert chose not to increase prices. She wonders if elevated travel costs might drive more locals to use her services. “I’m curious if we’ll have similar customer numbers or more, as people might prefer using our gas,” Kunnert said.

In Traverse City, Michigan, Robert Hinds introduced a $50 fuel surcharge for fishing trips through his business, Central Coast Angling. Owning a 22-foot boat, he relocates based on fishing conditions, requiring truck and boat fill-ups. Hinds reported increased cancellations as customers evaluated fuel costs. One regular from Nebraska skipped the spring trip.

“It’s tough. People still want to go out, but everyone has different budgets,” Hinds explained. He canceled his own fishing trip to Wisconsin after estimating $400 in diesel costs for his truck. “I can fish at home,” he concluded.

Leave a Reply

Your email address will not be published.