File photo (Image Credit: CFJC Today)

By Michael Reeve

FUEL PRICES

Five cent fuel increases can cost the city of Kamloops $60,000

May 9, 2022 | 4:22 PM

KAMLOOPS — The price of fuel in British Columbia is continuing to rise, with some jurisdictions once again cracking the 2-dollar-per-litre mark. Prices are going to be high over the next several weeks, but analysts expect that once we get past June, prices could pull back — provided the Ukraine-Russia conflict doesn’t escalate further.

The increased prices aren’t just affecting individual wallets with organizations running large fleets feeling the budget pinch. The City of Kamloops has a fleet worth over $50-million. With gas prices already up 30-to -35 cents this year, Planning and Procurement Manager David Hallinan addressed how it’s affecting the bottom line.

“The impact of gas right now on the City is starting to be a major component; we have a significantly large fleet,” began Hallinan. “Earlier this year we did an analysis for Council and determined that roughly every 5-cent increase of gas or diesel was going to result in a $60,000 cost to our cost setters.”

Hallinan estimates the rising prices have are expected to cost the city approximately $200-thousand, however it will fluctuate throughout the year with the cost of fuel. The increased costs are being funded through reserves and not tax increases.

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With little relief in sight, the city is investigating how best to limit their reliance on fuel.

“Maybe not so much electrification, what we want to look at is what is the functional capability of the vehicle, and then what is the best source to power and drive that vehicle,” said Hallinan. “In some instances, electric technology in some machinery, like garbage trucks, is still in its infancy. It may not be something we can jump into right away.”

The City has purchased some new hybrid vehicles for the fleet, but due to supply chain issues they haven’t arrived yet.

Beyond the pain in the pump, Kamloops residents should expect to see the increase raising the prices of everyday goods, whether that be at the super market buying groceries or at the mall picking up the latest electronic.

“It doesn’t matter if you drive a vehicle that’s all electric or zero emissions or alternate fuel or if you don’t drive at all. Ultimately, everything that you see around you at one point or another came on the back of a truck or on rail or marine and all of it is costing more,” said Dave Earle, B.C. Trucking Association president.

While truckers across British Columbia are always looking at ways to be as efficient as possible on the road, the fuel costs will continue to drive up the price of goods.

“Every member we have has fuel management processes in place trying to reduce their fuel burn, for not only economic reason but also to reduce their GHG emissions. That focus is always there,” said Earle. “If it costs more to move things, it’s going to cost you and I more to buy those things. How much? It really depends.”