The price of gasoline rose again above $2.08 a liter in the capital on Tuesday and the price spike is hurting some seasonal businesses.
It last hit 208.9 cents per liter on Sunday, setting a record for the city.
Joanne Oldak, owner of Lawn FX Landscaping, says it’s not that green from a business perspective.
“We went to fill up two trucks and the machines, I have six machines, so it was $500,” Oldak says, adding that’s enough fuel for two days of work tending to customer lawns all over the city. city. “We had to increase our rate a bit, but there are elderly people who can’t mow their lawns, people who have knee injuries, people who just don’t have time to do it… and their wages are not increasing. We have to stay in business, but if people can’t afford it, there won’t be small businesses. I mean, something has to be done.
Gasoline prices are hurting profits, as well as wallets, as prices per liter set new records every week.
“They will continue to rise as long as supply is too short for demand,” says Roger McKnight, chief oil analyst at En-Pro International. He says that while the government should step in to cap the tax, it is not likely. “The higher the prices, the less complaints I hear from the government. The HST is not a fixed amount in the price of gasoline; it varies, it’s a percentage, so the higher the price at the pump, the more revenue goes to the provincial and federal governments.
McKnight predicts Wednesday fuel prices in Ottawa will hit $2.10 a litre, noting that the HST on that amount is $0.24.
“Governments in general depend on demand destruction to pick up the slack and drive prices down; in other words, prices get so high that people say, “Damn, I’m leaving my car in the driveway.” I’m not going anywhere,” McKnight says. “But I think they’re misinterpreting human nature. It’s Memorial Day weekend coming up in ten days and it’s Victoria Day weekend next week. People are going to take the road and they’re going to see these prices, and they’re going to be very, very annoyed because they’re not going to come down anytime soon, believe me.