Rising gas and diesel prices deliver multiple negative economic impacts

Paul Hollingsworth examines the ripple effects on Canada's economy as fuel prices continue to climb across the country, with no reprieve in sight.

As gas prices go up, the pressure on various industries continues to spike as well.

Independent business owner Trevor Wheatley said the cost of fuel has slashed the bottom line of his plumbing business.

“It’s been climbing and climbing, and of course I am driving a bigger rig so it’s going to impact my cost,” said Wheatley, who also admitted those increases are passed to his customers. “I have to charge people, and I have to charge travel time now because covering the gas is important.”

Canadian Fuels Association VP Carol Montreuil said gas and diesel prices have climbed alarmingly across Canada since the start of the war in Iran.

“Gasoline is up 30 per cent and diesel is at 40 per cent,” said Montreuil.

Montreuil added, if fuel prices continue to climb, it’s easy to predict what will happen next.

“As we get close to two dollars a litre, people are going to change their habits for using gas,” said Montreuil.

Tourism expert and Dalhousie University professor Lorn Sheehan has witnessed fuel prices already casting a dark cloud over the tourism and travel industry, in North America and globally.

“With the airline industry, the biggest variable cost is fuel,” said Sheehan. “So, as fuel prices increase, they have to pass that on to the customers.”

Sheehan also sees warning signs for this summer, which was projected to be a busy tourism season across Canada, resulting in travelers spending money directly on transportation.

“We are probably going to see road trips closer to home, because of the gas prices,” said Sheehan, who expects Canadian travellers to stay closer to home in attempt to avoid rising fuel prices.

Wheatley has already considered altering his vacation plans this summer with his family because of rising fuel prices.

“We will probably change them and we won’t go where we normally would go, because of the fuel costs,” said Wheatley.