Fuel prices drop across N.L., but small businesses still feel the pinch of high cost

Fuel prices for gasoline and diesel dropped across Newfoundland and Labrador on Thursday, but the high prices are still a challenge for small businesses — especially in the Big Land.

The Public Utilities Board lowered the price of gasoline by 2.9 cents per litre Thursday, putting the maximum price for a litre of unleaded self-serve at $1.854 per litre on the Avalon Peninsula.

Prices are different in other parts of the province, including $1.879 per litre in central Newfoundland, $1.861 per litre in Deer Lake and Corner Brook, and $1.92 in western Labrador.

The price of diesel is down 12.1 cents per litre, but only on the island. Prices vary from $2.37 per litre on the Avalon Peninsula to as high as $3.10 in the Churchill Falls area of Labrador.

Furnace oil and stove oil are also decreasing. Furnace oil is down 9.54 cents per litre, ranging from $1.73 per litre to $1.91 per litre. Stove oil is down nearly seven-tenths of a cent per litre in Newfoundland, with no change in Labrador.

Propane will increase by almost two cents per litre, with prices now between $1.09 and $1.43 cents per litre across the province.

'There's only so much a small business can absorb'

But while prices are on the decline, the price of diesel is more than $3 per litre in areas of Labrador.

Western Labrador and Churchill Falls saw diesel increase by just under 39 cents per litre Tuesday, with the price topping $3 per litre.

For small business owners like Colin Vardy of Wabush, the high fuel prices are making business costs add up.

"I've noticed my shipping cost per pallet has actually increased by about 20 per cent," said Vardy, owner of Herb's Industrial, which sells industrial, recreation and janitorial supplies.

"With our suppliers and our carriers it hasn't been a big increase, but I do expect some of them to change now in the next couple weeks where we're going to have no choice but to look at our pricing schemes and find ways to recoup those costs."

Vardy said his business uses a fleet of eight to 10 vehicles and spends $4,000 to $6,000 per month on fuel.

Vardy said fuel prices have also affected other facets of his operation. For example, the business for snowmobiling equipment has been much slower this year, something he says is likely connected to the high price of filling up.

He said he hopes Thursday's provincial budget will include ways to help small businesses and change the provincial fuel tax.

"We already live in an industry and in a community where even with a reasonable income is a struggle for people to pay their rent and buy groceries and basic transportation, just enjoying the basics of life," Vardy said.

"So something is going to have to change.… There's only so much a small business can absorb."

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