Rising fuel prices drive up costs for Saskatchewan businesses

Rising fuel prices are once again hitting drivers and the effects are being felt across several industries. Stacey Hein reports.

Gas prices are rising again, and some Saskatchewan businesses say the higher fuel costs are cutting into their bottom line.

In Saskatoon, gas jumped about four cents overnight, sitting at an average of around $1.55 a litre, with some stations as high as about $1.64 on Friday.

In Regina, gas rose about five cents overnight, climbing from around $1.49 a litre Thursday to about $1.54 on Friday, according to Gas Wizard.

For businesses that rely on vehicles, rising fuel prices can quickly increase operating costs.

Saskatoon home builder Cambridge Homes said its project supervisors travel between job sites, suppliers and meetings every day, using a fleet of nearly a dozen vehicles.

“We are on the road all day,” said Arifur Rahman, owner of Cambridge Homes. “At the end of the month, when all the supervisors and managers submit their bills, I’m definitely going to see a big increase in the bills.”

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Rahman said rising fuel prices could also push subcontractors to raise their rates, adding a five to 10 per cent surcharge on projects.

“Everything goes back to the consumer, so that is the sad part,” he said.

For door-to-door salesman Jared Rusch, his car is his office. He said higher fuel prices could add an extra $30 to $40 every time he fills up.

“Wintertime, I’m sitting in my car keeping warm. Summertime, I’m keeping cold with the AC, so I use a lot of gas,” he said.

Higher fuel costs could also drive up air travel expenses.

Analysts say if jet fuel prices stay high, international flights could cost up to $200 more.

In a statement to CTV News, WestJet said rising jet fuel prices have already made operating flights more expensive. Air Canada said it is too early to forecast how ticket prices may be impacted.

The Saskatoon Airport said is also feeling the impact of higher fuel prices.

“We’re not immune from that for sure,” Stephen Maybury, president and CEO of the Saskatoon Airport Authority, said at a news conference Wednesday. “Definitely fuel costs have gone up, but I would suggest manageable for us right now.”

The recent spike in gas prices is being driven by tensions in the Middle East, pushing global oil prices higher. As fuel costs rise, those increases can ripple through the economy and eventually reach consumers.