Gas prices continue to soar, hurting businesses

As the maximum price of regular gas increased by another 3.1 cents across Newfoundland and Labrador on Thursday — a new record high for the province — one Fogo Island accountant says small business owners, especially in rural areas, are hard-hit.

Justin Hearn is a chartered accountant in Joe Batt's Arm where the gas price rose to $1.716 on Thursday.

"We're definitely impacted a little bit more in remote areas," said Hearn.

As part of the Public Utilities Board weekly price-setting, the maximum price of gas increased to $1.643 a litre on the Avalon Peninsula, $1.668 in central Newfoundland, $1.65 in the Corner Brook region and $1.661 to $1.681 on the Northern Peninsula.

In Labrador, the maximum price is now $1.734 in Churchill Falls, $1.709 in western Labrador, $1.508 in central Labrador and $1.673 in southern Labrador.

Most other types of fuel went up as well.

Diesel fuel rose by up to 2.2 cents per litre, furnace oil by 1.54 cents per litre and stove oil by up to 1.99 cents per litre.

Furnace oil is now $1.06 on the northeast Avalon, $1.09 on the northwest Avalon, $1.10 in central Newfoundland, $1.07 in Corner Brook and surrounding areas and $1.13 on the northern peninsula from Englee to St. Anthony.

Only those relying on propane heating fuel can call themselves lucky as the price went down by 2 cents per litre.

Hearn helps owners of small rural businesses make operational decisions.

"Fuel pricing tends to be a big, big role in that," said Hearn.

"When local companies especially have already paper-thin margins, really you have to make a decision whether you're going to have to pass the cost along to the customer or try to eat that cost."

One rural business owner who has to consider price adjustments is Delbert Pike.

Pike is co-owner of OnTime Courier Services which is based in L'Anse-au-Loup in southeastern Labrador.