Sask. taxi, truck drivers pinched at the pumps as fuel prices soar
Dayne Patterson | CBC News | Posted: March 10, 2022 10:54 PM | Last Updated: March 10, 2022
Regular gas prices in major Sask. cities averaging more than $1.76 per litre
While fuel prices in Saskatchewan are among the lowest in the country, record-breaking gas costs are still taking a toll on industries that rely on travel.
Glen Sali, owner and manager of Capital Cabs in Regina, said the cost of rising gas prices comes right out of taxi drivers' pockets.
"That's quite a bit on a taxi, compared to somebody [who] just commutes back and forth, [the cost of gas is] quite substantial," Sali said on Wednesday afternoon, when average gas prices were close to $1.70 per litre. "I never dreamt that it would go this high."
The record gas prices have coincided with the Russian invasion into Ukraine and accompanying bans on Russian gas.
Dan McTeague, president of Canadians for Affordable Energy and operator of a gas prediction website, told CBC News Wednesday that these are the highest fuel prices ever recorded in Saskatchewan. Despite that, the province's prices rank among the lowest in Canada, according to GasBuddy, a business that tracks gas prices in Canada as well as other countries.
Sali said that drivers were paying as low as 80 cents a litre at some times last year. A historical average of gas prices in Regina from GasBuddy showed average prices were just below $1 in early 2021.
At noon on Thursday, GasBuddy reported the average price of a regular gas was $1.767 per litre in Regina and $1.771 in Saskatoon.
Sali said the only way to compensate for the rising gas price would be to increase taxi fares through a request to city council, which he expects could take months and be a convoluted process.
He said the situation is worsened by the 11-cent carbon tax increase that's set to start on April 1, with the federal government rejecting a proposal to defer the increase, on top of industry losses from the introduction of ride-hailing apps and fewer rides because of COVID-19.
There are few alternatives left for taxi drivers, Sali said, who he estimates are losing about $20 to $30 each day to fuel costs.
"What can we do? There's nothing we can do … when our cost goes up the only way we can recoup it is we [have] to get a meter increase."
An fare increase would have to go through the City of Regina. The city says it has regular discussions with taxi industry representatives.
"We expect the subject of high gas prices to be part of our next discussion, and all comments will be carefully considered. Any changes to fare prices will require an update to The Taxi Bylaw," the city said.
'Backbone' of economy facing challenges
Susan Ewart, executive director of Saskatchewan Trucking Association, said the "soaring" price of gas is stressing an already strained industry of truckers taking a toll from a labour shortage and supply chain challenges.
"The higher the fuel costs go, obviously that's adding to those operational costs for them," she said.
Some costs incurred from the pump will be put on the shippers, Ewart said, but also on the consumer. She said the costs will inflate grocery and equipment prices.
Trucking companies will sometimes carry fuel costs and in other situations it's the trucker, Ewart said, though she was cautious about providing any specifics.
"Trucking is part of the backbone of the economy here: moving our goods to market," Ewart said.
She wants the Saskatchewan government to recognize that by following the Alberta government's lead.
On Monday, the Alberta government announced it would pause the provincial fuel tax on April 1, saving drivers 13 cents per litre, and hold that policy until the price of West Texas Intermediate (WTI) crude oil falls below $90 per barrel.
WTI is the North American oil benchmark. It reached nearly $130 US per barrel on Tuesday, but has since fallen to $106 US as of Thursday afternoon.
Moe said on Monday that Saskatchewan didn't rely as heavily on oil and gas revenues as the province's western neighbour, but is in the "early stages" of looking at providing relief to consumers.