METRO VANCOUVER (NEWS 1130) – We’re all feeling the pinch a day after gas prices around the Lower Mainland reached an all-time high, and that includes businesses.
Gas stations were selling for around $1.64 a litre on Thursday, with at least one station in Coquitlam hitting $1.67 a litre, and gas prices are expected to remain over the $1.60 mark until at least Easter, which retailers, particularly mom and pop shops feel.
“It hurts consumers, it affects your average person, but it definitely also impacts a lot of small businesses right across BC, including in the Lower Mainland, where there are some extra government taxes involved,” Richard Truscott with the Canadian Federation of Independent Business tells NEWS 1130.
“Bringing in goods and services from other suppliers, from vendors, and they’ll be paying higher prices as a result of the increasing cost of fuel.”
And if businesses are paying higher prices, they’ll be looking to make up the loss one way or another, through you.
“They’ll find a way to pass that back to the consumer indirectly,” says David Ian Gray, a retail analyst with DIG360.
“It’s hard, retail is on really tight margin so having big change from prices of what they’re buying can be really challenging for retail.”
Gray believes you’ll see the biggest change to online shopping and products that are delivered to stores quickly, often, like groceries and pharmaceutical drugs.
“That’s where we’re going to the biggest impact, the biggest hit. When you’re looking at maybe a 30 cent difference from what it was months back when it was a buck 30 and now it’s a buck 60.”
While there were predictions gas prices would hike up even more on Friday, stations appear to be charging a retail margin of 12 cents a litre instead of 14 cents, keeping prices at $1.62 in the morning.