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ShareDIEPPE, NB. — It seems drivers in the Atlantic Provinces have nothing to gain and a lot to lose from a proposed increase in wholesale fuel.
Irving Oil Ltd. has applied to the provincial regulator for a 21 percent increase on the wholesale margin it gets from selling gasoline and diesel to retailers in Nova Scotia, according to the Chronicle Herald.
Currently, Irving's wholesale margin is six cents a litre, but the proposed increase would make the wholesale margin rise to 7.3 cents a litre, a cost that the Retail Gasoline Dealers Association of Nova Scotia indicated would fall on the drivers.
“Every cent counts, that’s for sure,” said Jean-Marc Picard, executive director of the the Atlantic Provinces Trucking Association. “We buy hundreds of thousands of litres a year, so one cent at the end of the day makes a huge impact.”
If Irving is granted the increase in wholesale margin, truck drivers will face more debt.
“If I’m an owner-operator with one or two trucks and I pay $1,000 to fill up my tank every time I have a trip, I won’t get paid for that load for another 30 or 45 days. So I’d better have good cash flow or a good financial situation to sustain that type of money going out every day,” Picard told the Chronicle Herald.
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