SUNDRE — With the price of gas and diesel at the pumps inching their way into orbit, a local automotive enthusiast anticipates people might have little choice but to reduce their number of recreational or leisure trips, especially this summer.
“It’s getting a little bit astronomical,” said Cody McAllister, who is also a co-organizer of the weekly informal Sundre car meet behind the CO-OP Cardlock on Fridays from spring through to the fall.
Prices in the area seem to range between about $1.40 to more than $1.50 per litre for regular gas and diesel coming in a little more, with no end yet in sight.
“I never thought that I’d see $2 a litre — not that we’ve quite hit that number, but it’s steadily climbing toward that,” said McAllister. “It’s really going to affect come summer time, I think we’re going to be seeing a high number. It’s crazy.”
And a higher number at the pumps will more than likely translate to fewer people coming out to explore Sundre and the West Country, he said.
“I know some of the people who are winter driving their vehicles, are going to be driving a little bit less,” he said. “But I think we’re really going to see the effect come summer time when we start to do car shows.”
The Sundre Auto Group, which has a presence on social media to promote its activities, strives to connect with people from out of town and encourage them to visit. And with the cost to fuel up increasing as much as it has, McAllister anticipates some of the potential participants from places like Calgary or Edmonton might be forced to think twice before driving all the way out here.
“As a whole, we’re going to see the effect on turnout,” he said, referring to fewer people coming from farther away.
Although snowmobiling is not necessarily a full-time hobby for him, McAllister said he does occasionally head out with some friends to have fun.
That hobby faces the double impact of not only increased fuel costs, but general inflation all-around for repairs and replacements parts, he said, adding wear and tear invariably leads motorized vehicles like snowmobiles to break down.
And even if fuel is not as big an issue for something like a snowmobile with a small fuel tank, one still has to load up the machine and haul out somewhere to use it, he said.
“You’re taking your pickup truck and trailer, filling it up with diesel and running out there — it’s still going to be an expensive day,” he said.
There are no doubt some people who instead of going out every weekend, for example, will find themselves going out only once a month to stay within their budgets, he said.
Of course not everyone snowmobiles, but in a rural region like Sundre and the surrounding area, there is of course no shortage of people with pickup trucks, who might enjoy recreational trips to visit the West Country and frequent destinations such as Ya Ha Tinda.
“Maybe people won’t want to go for a leisurely drive like they used to,” he said.
Increase exceeds town’s estimates
Although not by much, the municipality’s bottom line stands to be impacted by the increase.
The town’s 2022 budget factored in a forecast of about $65,000 in anticipated fuel costs, which represents less than one per cent of the municipality’s entire $9 million in cash expenditures, said Chris Albert, director of corporate services.
Fuel price fluctuations affect the operating costs not only of the town’s fleet of trucks, but also large equipment including loaders, graders, street sweepers as well as smaller utility equipment and emergency generators, wrote Albert by email in response to questions.
“If current prices continue for a significant portion of the year or increase even further, that could negatively affect our budget by upwards of $15,000,” said Albert.
When calculating budget estimates for the future, Albert said administration examines past costs and incorporates additional factors including inflation, carbon tax increases, as well as anticipated increased servicing requirements.
Since council approved the 2022 budget in December, the expectation is for administration to work within the parameters of the established financial framework by finding savings in other areas to compensate for the unanticipated increase, he said.
“As with most household finances lately, the current spike in fuel costs is just another challenging factor, including increased heating and electricity costs, supply chain issues, and high inflation,” he said. “But our prudent and long-term approach to budgeting should serve the town well in minimizing the impacts of these sudden shocks.”
Local taxi service refrains from increasing costs
Jason Clarke, the sole owner and operator of Sunshine Taxi, said he’s certainly been keeping a watchful eye on the situation at the pumps.
“The price hasn’t gone up a whole lot as of yet,” said Clarke, who has family roots in the area. “But I’m expecting it, like everyone else, to go up more.”
Having started his business about six months ago after losing his job at a Calgary Starbucks during the pandemic, Clarke said the price at the pumps in town at the time was hovering around $1.50 per litre for premium gas.
The last time he fuelled up in Sundre, he said that price had jumped up to $1.74.
However, when asked how that increase had impacted his operation, Clarke said, “So far, it’s minimal. But from what I’ve seen so far, just my daily cost of running my vehicle has gone up.”
Regardless, he is not quite yet prepared to pass the increased cost burden onto his customers. So while he’s cognizant of the impact on his bottom line, Clarke said he plans to refrain from bumping up his rates for as long as possible.
“Like most businesses, I keep stuff like that in mind. I watch what’s happening and I listen to what’s going on,” he said.
“Do I have immediate plans to raise my prices? No, I’m going to hold off as long as I can. For the most part, we just got over a pandemic and our lives have been tough enough as it is.”
Compounding matters is general inflation that has seen the price of just about everything go up, he said, expressing a desire to stand in solidarity with people who are also on tight budgets.
“It’s a small town, I don’t want to stick it to them,” he said. “My philosophy has always been community first.”
But to stay afloat and succeed, a business has to make ends meet and afford its own costs to remain operational to continue providing a service, he said.
So, although hiking his prices is not yet on the docket, it’s a reality he confesses possibly having to face in the not-too-distant future.
“It’s just a rumour — I heard that it could go up over $2, and if that’s the case, at that point I would have to consider raising prices,” he said. “For me, that’s just a last case resort. I want to hold off as long as I can.”
