(File photo/paNOW Staff)

By Jaryn Vecchio

Rising Prices

‘That’s a cost a business can’t absorb’: P.A. businesses raising prices as gas & diesel costs rise

Mar 7, 2022 | 5:00 PM

An already tough time is about to become even more stressful for some Prince Albert businesses as gas prices rise.

Over the weekend, they jumped up, on average, by around 26 cents per litre across the country, while diesel went up roughly 34 cents per litre.

Dana Dirks, operation manager of Caribou Transport, told paNOW the current cost they’re paying at the pumps is unprecedented.

“I’ve been around the transportation industry off and on for 30 years and I’ve never seen it like this.”

He added the price for diesel is currently over $1.70 a litre. This is the highest Dirks has ever seen, however, areas like British Columbia are already looking at prices around $2.00 a litre.

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To ensure they can continue to pay their bills, the company decided they needed to increase their prices.

“That’s a cost a business just can’t absorb without passing it on to the user,” Dirks added.

Caribou Transport isn’t alone as Gateway North Towing has also had to increase their prices.

Owner Danny Goodwin said most people understand why they had to do it; however, some have shown their displeasure.

“Nobody wants to do it, but you end up being the bad guy at the end of the day and get told you’re ripping people off.”

Depending on the day, Goodwin noted his drivers may need to fill up twice a day. Without increasing their costs, the prices at the pump would be too hard to overcome.

Meanwhile, P.A.’s taxi companies are also feeling the pinch.

The latest increase is just another setback for an already struggling industry.

Back in November, Checker & Family and Grey Cab Prince Albert asked the city’s council to approve an increase to their fares to help cover the rise in costs. Council decided to compare prices with other cities before making a final decision.

Pardeep Kumar with Checker & Family said drivers previously paid around $45 every shift on gas, however, it’s since jumped to $60 even before this new increase came into effect.

Depending on the impact, he noted it’s likely the company reaches out to the city for support, mainly in the form of approving the increase in fares they’re asking for.

“Definitely depends how much it’s going to go by, how much we’re going to have to pay out… if it’s temporary or not.”

It’s expected prices will continue to be broken in Canada in the weeks and months ahead with one of the main factors being Russia’s invasion of Ukraine.

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Jaryn.Vecchio@pattisonmedia.com

On Twitter: @princealbertnow