N.S. businesses reliant on diesel caught in whirlwind of price fluctuation

For Josh Oulton, a Nova Scotiafarmer in Annapolis Valley, the fuel surcharge he is paying to ship his products is higher than his base shipping cost.

On Saturday, the price of diesel fuel topped $2.50 per litreafter a 13-cent jump. The current minimum price in Nova Scotia is now $2.51.

Diesel went up by 25 per cent in a week. It now sells for more than $1 per litre than it did this time last year.

"There will be people that will stop farming because it's just too much," Oulton said following the most recent increase. "Now that surcharge will go up from the trucking companies."

Nova Scotia Utility and Review Boardsets the fuel adjustment price for truck and bus companies every few months when the cost of diesel changes.

As an example, Oulton saiditmight cost him $120 for a trucking company to take a load of apples to a grocery store. But the trucking company could add a fuel surcharge of $140.

With his farm machinery also running on diesel, it's not just delivery costs rising for him.It's also production, he said.

Bus challenges

Mike Cassidy, who owns Maritime Bus, saidthe rising cost of diesel is a huge challenge for the entire region.

He saidhe worries not only for his 500 employees, but the many people and businesses reliant on bus service.

Diesel prices in Nova Scotia were a few cents higher in mainland Nova Scotia and Cape Breton this spring, and Cassidy said that was the worst he's ever seen. Now prices are closing in on those numbers again.

"These are going to be tough times ahead for this winter," said Cassidy.

He said he is concerned for the mental and physical well-being of everyone in the region.

"We're going to see new records set in furnace oil, gasolineand diesel and it's very, very unfortunate," he said.