Sky-high fuel prices continue to take their toll on consumers and businesses. The recent record-breaking rates at the pump means added costs for many companies, especially ones dependent on transportation.
Sebastian Kirsman owns Sebastian Deliveries, a transport company that services Medicine Hat, Calgary and Edmonton and is feeling the pressure at the pump.
“Usually I get around 400 liters a week and last year it was under $500,” Kirsman said. “Now $500 doesn’t even make 350 liters.”
Kirsman racks up roughly 10,000 kilometres a month driving. The spike in fuel has meant a rate increase for services, something he says he and his competitors had to do to stay in business.
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“Its not just normal inflation of two of three per cent a year where you increase your prices five or 10 per cent every three or five years. Now it’s like 20 per cent. I have been doing this 12 years and I have never increased my prices by 20 per cent,” Kirsman added.
Angel Harper co-owns two Lethbridge businesses: Mocha Cabana and Mocha Local. Both are very dependent on deliveries coming in and out.
“I had to make a bold move. We are raising some of the prices at the restaurant this weekend to be comparable to competitive restaurants in Lethbridge and we are seriously looking at Mocha Local — we just took a lift on our minimum order size,” added Harper.
She said Mocha Local might have to also consider a temporary increase in its delivery fees. Harper added its just the latest thing to shoot up in price.
Take-out packaging, canola oil and other cooking ingredients have doubled in the last 12 months.
“I believe we are over the hump and we are going to make it, but this is just another stick in the spokes, the financial spokes that is going to hurt us all, and its going to have to be passed on to the consumer if we are going to stay viable.
“It just sucks.”
Most gas stations in Lethbridge were selling fuel for $1.74 per litre on Wednesday, up almost 30 cents a litre from just three weeks ago.