A group representing Canadian truck drivers is sounding the alarm that the skyrocketing price of diesel could soon be passed down to consumers, asking the federal and provincial governments to step in with financial help before that happens.
Diesel prices began to surge last week as ongoing conflict in parts of the Middle East continues to escalate, and the financial shockwaves are now reaching home.
“It’s a tough situation,” said Tej Dulat, who represents the Mississauga-based Canada Truck Operators Association. “At this time, small and mid-sized trucking companies are just going with no margins.”
Dulat says if prices continue to rise without some sort of relief measure from either the federal or provincial government, the increased cost to transport goods will eventually make it to consumers.
“The trucking industry is a very low margin business, (the) profit margin stays between eight and 12 per cent,” he added. “Whatever profit you are making is going to diesel at this time.”
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According to the Ontario Federation of Agriculture, more than 90 per cent of Ontario’s food supply is transported by truck, potentially impacting grocery costs if the increased price of diesel is passed on to distributors.
When asked if any further relief was coming for Ontarians dealing with high diesel prices, Ontario’s Ministry of Finance pointed to previous fuel tax cuts and other financial supports such as One Fare and removing tolls on certain 400-series highways.
When Ottawa dropped the federal fuel excise tax, drivers of gasoline-powered vehicles got a ten-cent-per-litre break on average. For diesel, the price reduction was only four cents on average, leaving diesel-reliant drivers feeling more of a pinch.
Dulat explained that smaller trucking companies operate within the “spot market,” arranging to pick up loads day-of and often getting paid months after the job is done. He said this makes it nearly impossible for these firms to recoup any drastic increase in fuel costs.
“They are trying to absorb what they can, but at the end of the day they have to make money. They have families,” he said. “(Costs) are going to be passed on to the consumers after some time, if things go on like they are.”
So I did the math, and here is how it works out. For a 40000lb load..
2025 $1.75/liter @23 ltr/ 100kms=$40.25 so 1000kms =$402.50
2026 $275/liter =$632.50 for 1000kms
So your 10lb bag of potatoes last year was ten cents fuel cost. This year it would increase to 16 cents.
A SIX CENT increase. This fuel cost increase is not the whole problem, somewhere else in the supply chain is screwing us.
ASK CORNHOLE CARNEY IF HE GIVES A F/ K ???
Just keep those elbows up little sheep
Funny isn’t it that rising costs always mean we will pay more yet falling costs never mean we pay any less
Oh here’s a novel idea diesel prices go up so that may lead to food prices going up that is such a stupid ridiculous story of course it is it’s fact what the f*** is wrong with you people you f****** people are f****** stupid just dummies man you f****** asked for it you asked for how your fuel to be more expensive you’re not drilling anything out of Canada you said you’re taking what’s in Canada shipping it raw to the US and then buying it back that’s crazy that is a lunacy and you keep doing the same thing over and over again you know what that is called that’s called Insanity when you keep doing the same thing over and over and over again and expecting a different result you’re going to keep getting higher fuel costs whatever the fuel is and whatever other materials come from that so get with the program you f****** dummies now you want to get close to the EU so you want to get close to the Third biggest economy in the world but not the first biggest economy in the world so you’re losers so you want to come in third instead of first you’re losers
Alberta is the biggest consumer of diesel. Price at the local pump was $2.84/l
The sad thing, the reason for this increase (the US) is complaining that their price is so high. Their average price is just over $1/l