SASKATOON – Low gas prices may be a boon for consumers, but they also mean bad news for some local businesses.
“In one way the bottom line is better because we’re not spending so much on fuel, but on the other hand, with the slowdown, it hurts,” says Nitin Madiratta, owner of Can-Do Delivery Services.
He’s not the only one who is not benefitting from low gas prices. Airline passengers are still paying fuel surcharges, and ticket prices haven’t come down with the price of gas.
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That’s because airlines buy their fuel differently. They purchase jet fuel in U.S. currency at a set price ahead of time, a process called hedging.
“Hedging by itself isn’t an evil thing, it’s typically to make things more stable,” says Jason Toews, founder of gasbuddy.com.
Madiratta’s finding that with gas at a five-year low, people are choosing to deliver goods themselves instead of hiring him to do it.
“I know I’m not going to make friends when I say this, but it’d be nice to see some fuel prices that are a little bit higher,” Madiratta says, adding that $1.10 or more per litre would be ideal for his business.
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