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Okanagan businesses adapt to rising fuel prices

Okanagan business adjust operations and pricing in response to soaring gas prices – May 9, 2022

Business at Okanagan Wine Country Tours is ramping up for the upcoming tourist season.

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The promise of more tourists vacationing in the Okanagan after two summers of restrictions amid the COVID-19 pandemic is welcome.

“We’re just so grateful to still be standing after two years of COVID, said general manager Marsha Morrish. “It’s been a tough two years but you know, here we are.”

While public safety measures have been lifted, businesses now have to contend with skyrocketing gas prices.

Fuel costs have prompted many companies to adjust prices and tweak operations.

“We are adapting with our pricing or just consolidating some tours,” Morrish told Global News. “We have all the Mercedes Sprinters, so they’re diesel. Diesel gets great gas mileage, so we utilizing those vehicles as much as we can.”

A litre of regular gas in Kelowna was sitting at $1.95 at most stations Monday, while in other parts of the province, such as Vancouver, gas was posted at $2.22.

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“It’s insane, it’s absolutely nuts, said Heather Miekle, who owns Kelowna Express Freight.

She said the courier company is paying more than double what it did for gas at this time last year.

“I took a quick look at percentages between say last year sort of January to May, and this year, January to May, and they are up 65 per cent, which is astronomical, “she said. “Looking back even before Christmas, we would spend $5,000 to $8,000 a week. Now we’re spending upwards of $14,000 a week in fuel.”

With a fleet of 21 vehicles and 300 to 500 deliveries a day across the Okanagan, costs are quickly adding up.

“We’ve been trying for months to kind of stave off making any tough choices with having to raise fuel surcharges for clients but it’s getting to a point where you know, we can’t really wait that much longer,” she said.

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The record-setting gas prices are also a concern at the Earthly Creations Floral and Gift Shop.

“They are unsettling at this time, “said owner Marie Shandalla.

The floral shop does anywhere from 50 to 100 deliveries a week.

Shandalla said she’s hoping she doesn’t have to pass the extra costs to the consumer.

“We’re just still holding our own and being able to give really good quality service and be able to just take care of that extra cost that we are taking on,” she said.

For the latest information on gas prices in Canada, visit the GasBuddy website.

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