Canadian businesses left paying pumper

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Wednesday, March 8, 2000 Businesses left paying pumper

By JOHN STEINBACHS, Ottawa Sun IT'S UP to those running fuel-hungry businesses in Ottawa-Carleton to decide who has to cover the cost of rising gas and diesel prices.

For some companies -- like Bill's Parcel Delivery 1976 Ltd. -- the answer is to ask customers to pay a little more.

"I thought our lines would be just flooded," said sales manager Ed Guerard after his company added a fuel surcharge to invoices in February. "But that was not the case."

Guerard said the decision to add a surcharge was made to help the company's 68 drivers who were feeling the pinch of higher gas prices.

The money goes directly to drivers who travel about 250 km a day, he said.

'WE ALL GO THROUGH IT'

Guerard said customers have reacted well to the new charge.

"They stand at the pumps themselves," he explained. "We all go through it."

He said the surcharge changes depending on the cost of fuel. This week, the charge was 4% on top of the gross amount of the invoice.

Yesterday, gas prices at most stations in Ottawa hovered above 70cents a litre. At the Petro Canada at Bronson Ave. and Gladstone Ave. a litre of gasoline was 74.9cents.

Other delivery companies say the high prices are forcing them to look at fuel surcharges.

"I'm just waiting to see if the government does something," said Robert Belair, owner of Executive Parcel Service.

"Last year, we were paying 57cents a litre," he said.

If the price of diesel stays high it could end up costing OC Transpo about $2 million this year, said spokesman Robert O'Connell.

The bus company budgeted for fuel purchases at about 43.7cents a litre for the year, he said.

CONTINUING TREND

In January, it bought fuel wholesale at 50.21cents a litre, a trend that has continued.

For every cent OC Transpo pays above 43.7cents, it costs them $315,000, O'Connell said.

Bus company managers are trying to figure out how to cover the increased costs, said O'Connell.

Transpo will not raise fares to make up the difference, he said.

http://www.canoe.ca/OttawaNews/OS.OS-03-08-0017.html

-- Martin Thompson (mthom1927@aol.com), March 09, 2000


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