REGINA — Regina businesses and non-profits are feeling the impact of increased gas/diesel prices.
Stats from Gasbuddy on Wednesday show the average price for gas in Regina sits at $159.8 per litre, while diesel has increased to $194.9 a litre.
A local non-profit, the Regina Food Bank (RFB), said it depends on daily food transportation throughout the city.
“We have drivers going out to the retailers and other locations to collect donations every day. And also we’re dropping off food hamper. Every day we drop off about 130 hampers to the homes of people who request delivery,” said RFB interim CEO Evelyn Cerda.
Cerda also mentioned their new partnership with Regina Public Schools is increasing food delivery services.
“So we are delivering now to 19 schools, and that’s an additional delivery route that we didn’t have before.”
Cerda estimated the RFB usually spends about $600 every two weeks to fuel its three trucks, a cost that has now risen by $100 due to current gas prices.
Grocery stores, from which the RFB purchases food, are also driving up food prices with the added transportation cost.
“So it’s going to reflect on food costs, it’s going to reflect on other areas of people’s lives. So what we’re doing right now is keeping an eye on that and kind of being prepared to absorb any increase in demand.”
Cerda said the food bank will begin to feel the real impact of rising gas prices in its operation costs if they persist for one to three months.
On the flip side, a 20-year transportation company owner in Regina, who wished to remain anonymous, said moving businesses will face a substantial cost and prices increase due to rising diesel prices.
“The bottom line is that filling 10 trucks in a fleet will cost an additional $130 per truck.”
The owner noted each truck typically requires between 300 and 400 litres of diesel to fill up, costing about $600 per truck.
As diesel prices rise, moving companies are being forced to increase their fuel surcharges.
“At the beginning of March, the fuel surcharge was at 24 percent. So, next month, a new price will be set for that.”
Fuel surcharges are applied as an additional fee. If a customer is paying $10,000 for a move, an additional $2,400 would be applied from a 24 per cent fuel surcharge.
This means increased costs for transportation companies ultimately trickle down to consumers.
“That’s the bottom line. It doesn’t matter if it’s groceries, it doesn’t matter if it’s anything that we purchase out there, it’s always passed on to the consumer,” noted the owner.
If diesel prices continue rising, the owner wouldn’t be surprised if Regina sees $2.50 a litre for diesel by summer.
The ongoing U.S, Iran war is causing a large disruption of oil supply, which affects gas prices. While U.S. President Donald Trump has recently indicated the war will end soon, no real timeframe was announced at this time.
