A view of the price of gas at a service station in North Battleford Wednesday. (Josh Ryan/battlefordsNOW Staff)

By Angela Brown

Financial impact

Skyrocketing fuel prices will hurt agriculture-related industries

Mar 9, 2022 | 5:48 PM

THE BATTLEFORDS, Sask. — With prices hovering at 169.9 cents per litre in the Battlefords Wednesday and 158.9 cents per litre in Meadow Lake, the surging fuel costs are not only tough on families but the agricultural industry as well.

“I think it’s going to impact many industries in our community…,” Battleford Mayor Ames Leslie said. “From the ag industry, by all means they are about a month away from one of their busiest times of the year, and one of the largest fuel consumption times of the year, with seeding in spring. So it definitely is going to feel an impact to our local producers.”

Leslie said fuel rates will also be seen on costs for food in the grocery stores, as transportation prices rise.

“As the cost of fuel and diesel goes up, it will impact our food prices and our product prices as well,” he said. “This is something our provincial and federal governments need to look at, to try and reduce the impact to the whole province and country. They need to do it sooner than later. ”

For producers trying to recover after dealing with the drought on the prairies during the 2021 harvest year, Leslie said this will be another challenge for them.

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“Last year was a hit with reduced crop quality and bushels,” Leslie said. “Now the cost of everything is increasing — fuel, and fertilizer… It could be another year where they need to watch those pennies and dollars, and make choices to protect their business as well. It’s unfortunate.”

The Battlefords Agricultural Society Inc. will also see the impact from higher fuel costs.

General manager Jocelyn Ritchie is worried about what the high fuel prices will mean for the midway providers travelling to North Battleford for the annual fair.

“Our rides for the exhibition in the summer come from B.C., and they have one of the highest gas prices in the country right now,” she said. “We’re concerned our cost of the ride bracelets for the fair are going to go up quite a bit.”

Ritchie added people don’t realize how much fuel is needed to run the rides. So it will highly impact the company, which will in turn impact the local Agricultural Society.

Saskatchewan Association of Rural Municipalities (SARM) president Ray Orb said climbing fuel costs affect rural municipalities’ operations too, which is a concern since they have equipment to fuel up to get their work done.

While Alberta is temporarily removing the provincial tax on gas and diesel sales, that isn’t the case in Saskatchewan currently.

“Our budget is coming down here on March 23 so there might be something in it, but I’m not sure,” Orb said.

He is aware Saskatchewan Premier Scott Moe said in reports he hasn’t ruled out some type of assistance and that nothing is off the table right now.

Orb said there are federal fuel taxes to consider as well, which are a concern.

He noted looking at all federal and provincial taxes combined, including the gas tax, carbon tax, and excise tax, there is actually over 35 cents a litre of total taxes.

“I think both levels of government are going to have to try to figure out how they are going to soften the blow to industries, like farming, mining and logging — all those industries that are important to Saskatchewan, including manufacturing,” Orb said. “It has an affect that it could soften the growth of our economic recovery.”

Orb anticipates the topic of high fuel costs will be on the floor during the Bear Pit session March 16 at the upcoming SARM convention in Regina.

“I think the Premier is going to get those kind of questions: What are we doing? Are you looking at gas tax?…” he said. “If the provincial government does take off some of the fuel taxes you have to recognize there are federal fuel taxes on it as well.”

Orb expects people also will ask if the province is looking at pushing the federal government to get the Keystone XL Pipeline project back on track, and the Trans Mountain Pipeline project that is still behind.

“I think we need to put pressure on the federal government too,” Orb said.

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Angela.Brown@pattisonmedia.com

On Twitter: @battlefordsnow