Sask. Trucking Association calling on province to axe road tax on refrigeration units

WATCH: As Jacob Carr tells us, the Sask. Trucking Association is calling on the government to axe the provincial road tax on refrigeration units.

A trip to the grocery store is costing more and more. One of the reasons, according to the Saskatchewan Trucking Association (STA), is the provincial road tax.

The STA is now calling on the provincial government to axe the tax on semi refrigeration units.

Truckers are currently paying the tax on refrigerated trucks and trailers but argue it’s unnecessary.

“We also told them that it doesn’t seem fair that you have industries like agriculture, construction, forestry that have off-highway equipment that are able to use this dyed-diesel and save the road tax,” George Henderson, director of operations for the STA, told CTV News.

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The Government of Saskatchewan said in a statement that the marked diesel fuel program is in place to help reduce the cost of fuel for industries who do not use provincial highways.

It went on to say that adding refrigeration units to the program would save about $1 million annually and once spread out to the entire industry – would have a minimal effect on food inflation.

Despite the government’s reassurances, some Saskatchewan residents say they are feeling an increase in grocery prices.

“Fruit is, and coffee products, and chocolate has gone crazy and we love chocolate,” Saskatoon resident Allyson Norrish explained. “It’s gone really high, just everything in general has pretty much gone up, so you really have to wait for the sales.”

While the road tax plays a part in grocery inflation in the province – some food experts say there are other key factors at play.

“What may affect our food prices are our trade prices really. Tariffs and most importantly, counter tariffs,” Dalhousie University researcher Sylvain Charlebois explained.

“If you notice that the price of coffee has gone way up, that’s due to counter-tariffs in Ottawa.”

With the current road tax, the trucking association says each refrigeration unit costs an extra $24,000 to fuel each year, with the tax coming in at 12 cents per litre.

“I grew up on a farm and I remember my parents would have purchased it for combines and tractors,” Henderson added. “But yeah, it’s just doesn’t seem like a lot, 12 cents a litre, but the consumption of diesel fuel for industry is quite large.”

Representatives with the STA say they have been in discussion with the provincial finance minister but haven’t had any of their questions or concerns on the topic alleviated at this point.