Over the last few months, fuel prices have been quite different in Western and Easter Canada, the Manitoba Trucking Association (MTA) claims.
Fuel prices are rising at a rapid pace and over the past several months, trucking companies have seen significant increases in Western Canada due to a Shell plant shutdown in Edmonton, downed Suncor equipment in Fort McMurray and a power loss incident in Edmonton.
These issues have caused diesel fuel prices to rise more dramatically in Western Canada than in Eastern Canada, where prices were much less affected.
The trucking industry should tell shippers about these price differences so shippers can better understand the variations in fuel prices across Canada, the association states.
“The MTA encourages its carrier members and the trucking industry in general to discuss options with their customers to provide temporary relief from this cost impact as well as make shippers aware of the fluctuation in fuel prices across Canada and to expect higher fuel surcharges because of it,” the association stated in a press release.
Many trucking companies will use a fuel surcharge program based on the FCA (Freight Carrier’s Association) index, but the model is based solely on a sample of Ontario and Quebec retail diesel prices.
The graph below shows the past and current trend of west and east wholesale diesel prices.