Mitchell Martin
Gas prices are creating a ripple effect throughout the economy, as delivery services aren’t spared.
Geopolitical tensions fuelled by Russia’s invasion of Ukraine are driving record highs, with the cost of a litre of regular gasoline already exceeding $2 in Metro Vancouver.
That doesn’t bode well for companies that rely on gasoline to complete their services, and prices are bound to go up.
“Unfortunately, to make this work, we do have to continue to up our fuel surcharge, with reason to how the gas prices are right now,” said Blaise Champion, assistant of operations management at Vernon Ace Courier Services.
Not only will the increase in fuel affect the prices, but it also has a trickle down effect on things like scheduling trucks daily.
“We did have to reconfigure our line hauls. We had to try and get those at times that made sense and make sure we were making the most out of its usage,” said Champion.
“You want to make sure you are using up your truck when it’s full as opposed to sending a five-ton out with just a few small boxes on it.”
Global consumption of oil is estimated at 100 million barrels per day, with Russia producing about 10% of that daily.
AJA, a Vernon delivery service that delivers an assortment of day-to-day necessities, said although they saw this coming, the drivers must do what they can to conserve gas.
“We definitely try to conserve where possible, so if you are not on a delivery, you just have your vehicle off,” said owner Anne Cotton on Wednesday.
Cotton mentioned she has been preparing for the price increase for 3-4 years now, so some of the costs are already associated with her service; however, things might change if the price continues to climb.
“If gas prices stay as high as they are, I may have to re-think things, but I don’t want to because the more that deliveries cost, the less business we make. So we try to help everyone we possibly can,” said the owner of AJA delivery.
Premier Jason Kenney has reduced fuel taxes in Alberta and promised $150 rebates on electricity bills to combat soaring energy bills. However, no such action has been taken in B.C. or other provinces.
