Fuel tax break offers limited relief as diesel costs squeeze fleets, small businesses

My rant for now....

Brokers read this headline and are frustrated that carriers are not automatically and immediately lowering our rates. Remember:
1. Its 4 cents. $0.04 cents. It's nothing compared to the over 2.00/L. A 2% decrease in the fuel cost is not an automatic 2% decrease in the total freight cost.
2. It comes off at the manufacturing level which will take days or weeks to reflect at the pump.
3. Who is to say that the manufacturer or any of the touch points in between will pass that little bit on? No, it will be buried into the price for someone else to profit from.
4. What about all our other costs that now have fuel surcharges? How about an oil change on our truck costing more? What about DEF price that went up $0.30/litre because the Nitrogen comes from the middle east?


BTW, at this time, the Strait of Hormuz is still CLOSED, FERMEE, CERRADO and your price will not go back to what it was on Feb 1, no matter how much money you are losing on your rate to your customer. Go to your customers and ask them for more. Tell them to look at the pump price for diesel - the green one under the red one. When it comes down, we will discuss it further. When the Strait is open, it will take months to settle the price back to something stable. I can guarantee you that it won't be $1.20/litre like it was on Jan 1 or the $1.30/litre like it was in February 2025.



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Temporarily suspending the federal fuel excise tax - Canada.ca

The Government of Canada intends to introduce draft legislative amendments to the Excise Tax Act to temporarily suspend the application of the federal fuel excise tax on gasoline and diesel fuel by setting their rates to 0 cents per litre, effective April 20, 2026 until Labour Day, September 7...
www.canada.ca www.canada.ca
 
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