Sudbury's record-breaking $1.60/L for fuel makes operating fleet businesses challenging
CBC
The cost of fuel hit an all time high in Greater Sudbury last week when it climbed to $1.60 per litre.
The added expense makes it difficult for businesses that rely on fuel for their operations, especially if they're trying to make a profit.
Aaron Taxi operates a fleet of 59 taxis. Owner Michael Sanders said he's spending about $4,000 more in weekly fuel costs alone due to the price at the pumps.
"It's pretty much eliminated any chance of a profit," he said. "It's challenging to swallow the constant increase in prices."
Cab fares are set by the city so raising rates is not an option.
"There are only so many avenues that we can really take," he said.
"Obviously we're not going to be cutting labour rates, we can't cut gas rates. We can increase the amount we charge, but that probably wouldn't be met with a lot of enthusiasm from our customers.
Sanders has incorporated 16 hybrid vehicles into his fleet which has helped with some fuel costs. He said he is considering adding electric vehicles, but at this point that cost is too much for the business.
"It is a rock and a hard place situation. Pretty much all we can do is find those efficiencies and they're small, incremental-type solutions to a gigantic problem," he said.
It's the same difficult situation at Lockerby Taxi, where there is a fleet of 40 taxis, all gas-powered..
Co-CEO Sharon Flinn says the fuel for those vehicles costs the business about $!,000 a day. The business uses an average of 700 litres of gas a day or 3,800 litres a week.
"Obviously fuel is one of our expenses in our bottom lines here, so it keeps on etching away at what kind of a profit we're trying to make," she said.
"We don't want to increase our fares. So it just makes it very difficult to make some money at this ballgame," she added.
Lockerby Taxi does have a gas tank on the premises and buys its fuel from a supplier at wholesale prices.
