Fuel prices have finally gone down, and while this is a reason for everyone to celebrate, trucking and transport companies in particular have been ecstatic.
Alberta Sales Manager for Mustang Transport Blaine Mackeil explains that lowering the cost of gas and diesel will pay off immensely for the company.
"For the normal person it might not be huge, but for trucking companies, it's immensely important. We're looking at the diesel prices for the most part and those have dropped significantly in the last week."
While the average person uses gas, trucking companies primarily use diesel. Like gas, diesel also saw its price skyrocket before starting to go down recently. Diesel was sitting at 199.9 before recently dropping to 171.9. This nearly 30 cent drop is huge for a company that goes through thousands of litres a day. Some of the transport trucks have 1360 litre tanks, so this drop saves around $380 per tank. Other smaller trucks may have much smaller tanks, but the savings are still immense.
"We have hundreds of trucks in our fleet. So if you're looking at it, we're spending probably hundreds of thousands of dollars on fuel a week. When you're looking at an almost 30 point drop, that's huge."
The lower costs for trucking companies will directly translate into lower costs for the customer as well. Because of the price drop, Mustang Transport was able to make things cheaper to ship.
"That huge drop means a lot. We've actually just dropped our fuel surcharge today by another 15 cents just to give back those savings to our customers. It's huge."
"When you're talking about a 300 gallon or 1360 litre tank... that's huge savings. And of course as soon as that big drop happens we pass that onto our customers."
The recent fuel prices have seen transport companies charging much more than they used to. Mackeil explained that a 53 foot truckload from Vancouver to Calgary used to cost just under $2000, but right now it's going for $5000. However, if the fuel prices continue to drop we could see the shipping charges start to dip as well.
According to Mackeil, the fuel price is what's driving up the costs of the majority of goods, meaning it plays a huge role in inflation.
"The fuel really dictates the charges right now. Right now the big factor in inflation is the fuel."
While it's too early to judge, the early signs of fuel prices dropping could be a promising sign of things starting to get more affordable again.