Coastal Georgia Delivery Biz Strained by Rising Fuel Costs

Local Farmbag says higher gas prices limit what they can offer workers and may force them to raise prices for customers

Apr. 8, 2026 at 5:37am

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An abstract geometric illustration using overlapping triangles and rectangles in shades of green and brown, conceptually representing the financial pressures on a small delivery business from rising fuel costs.Coastal Georgia delivery service grapples with the ripple effects of soaring gas prices.Savannah Today

Amid nationwide gas price increases, some local businesses in coastal Georgia and South Carolina are feeling the strain. Steve Howard, co-partner of delivery service Local Farmbag, says the higher fuel costs are adding significantly to their budget, forcing them to consider raising prices for customers despite not wanting to do so.

Why it matters

Rising gas prices impact small businesses that rely on delivery and transportation, potentially leading to higher costs being passed on to consumers. This story highlights the difficult decisions facing local companies as they try to balance their own expenses with keeping prices affordable for customers.

The details

Local Farmbag, a Garden City-based delivery service that brings farmers market goods to customers' doors across coastal Georgia and into South Carolina, is seeing a major impact from the gas price hikes. According to AAA data, regular gas prices in Savannah, Hinesville-Fort Stewart, and Hilton Head-Bluffton are up 24%, 29%, and 31% respectively from a year ago. For Local Farmbag, this means the cost of fueling their delivery vehicles has gone from around $90 to $130 per vehicle, an extra $25 that adds up quickly across their fleet.

  • Gas prices in coastal Georgia and South Carolina have risen sharply over the past year, according to the latest AAA data.

The players

Local Farmbag

A Garden City-based delivery service that brings farmers market goods to customers' doors across coastal Georgia and into South Carolina.

Steve Howard

The co-partner of Local Farmbag.

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What they’re saying

“Fuel goes up, everything else goes up.”

— Steve Howard, Co-partner, Local Farmbag

“It's a difference of spending $90 to spending $130. An extra 25 bucks for every vehicle adds up pretty quickly.”

— Steve Howard, Co-partner, Local Farmbag

“We really don't want to raise the price on the customers, but it gets to a point where you just simply have to.”

— Steve Howard, Co-partner, Local Farmbag

What’s next

Local Farmbag is closely monitoring gas price trends and evaluating options to offset the increased fuel costs, including potentially raising prices for customers, though they hope to avoid that if possible.

The takeaway

The rising cost of gas is putting a significant strain on small businesses like Local Farmbag that rely on delivery and transportation, forcing them to make difficult decisions about passing those costs on to customers. This story highlights the broader economic impact of fuel price fluctuations on local communities.