Fuel increases and carbon tax hitting truckers hard

The carbon tax and rising fuel costs are taking a toll on Mission truck operators.

“It’s hitting us big time,” admits Mission’s Dick James, owner/operator of Dick James Trucking. “From January until now, our fuel costs have risen $8 an hour more.”

Diesel costs have risen 50 cents a litre since the beginning of the year, and owners like James have been forced to pass some costs on to customers, and absorb the rest. “We added about $3 [to our rates] about three months ago.”

James has told his drivers to back off on the gas pedal as much as possible, and to not idle for long periods whenever feasible, but he faces the reality of nearly $150 in fuel costs a day, per truck, with drivers’ wages around $180 to $190 a day, based on an eight-hour shift.

Mission Public Schools isn’t escaping unscathed either.

According to Secretary-Treasurer Ray Velestuk, the new tax and fuel prices are having a big impact.

“Transportation is going to cost about $50,000 to $75,000 more,” he told The Record. The school district isn’t compensated for the extra fuel costs, so the secretary-treasurer has to find the money somewhere, in an already tight year.

When bus fuel costs go up, it directly correlates to job losses in the district, he said.

Dean Davies from Davies Sand and Gravel said his operation has noticed a slow down, but it’s a combination of a weaker economy and higher fuel costs.

“We’ve seen some people change their mind on projects because of costs,” he said.

Davies said the company has attempted to reign in as much of the increasing costs as possible, but inevitably, some have creeped up on customers’ bills.

“We’re watching [fuel prices] everyday, and we’ve tried to absorb it,” he continued.

Davies also doesn’t see much choice.

“You can’t very well give up, and you have to keep going.”

The average long-haul owner-operator who burns up 70,000 litres of diesel a year will pay $3,000 in carbon tax over the next 12 months.

That driver, based on average taxable earnings of $30,000, will get a supposedly offsetting tax break of just $55, according to the B.C. Trucking Association.

President Paul Landry says that’s a pittance representing just a few cents back for every carbon tax dollar paid.

“This tax is patently unfair for our industry,” he said. “Many in our industry will pay thousands of dollars in carbon tax every year.”

While ordinary families are being promised they could come out ahead with a bit of conservation, Landry says truckers are being left in the ditch.

“Government believes industry will fully recover a carbon tax from our customers,” he said.

While that will happen to some degree, he said there will be “huge imbalances” among drivers and companies.

Landry is calling on finance minister Colin Hansen to put together an aid package for truckers to help improve truck fleet efficiency.

Retrofits to make trucks more aerodynamic, install anti-idling devices and switch to low-rolling resistance tires could improve fuel efficiency up to 30 per cent.

Landry said the province should help truckers switch to those and other technologies by offering rebates like the ones it pays out to hybrid car buyers, no-interest loans and PST exemptions.

He also proposes a licensing fee holiday for trucks that have smog-free engines.

Surrey trucker Ed Rabideau says fuel prices are “insane” and threaten to cause many drivers to quit.

“The fuel prices are absolutely killing this industry,” he said. “I’ve never seen so many rigs for sale in my life.”

- with files from Jeff Nagel