Snow removal companies in Ottawa say they’re contending with higher fuel costs as they gear up for the winter season, and some say that could mean bigger bills for their customers.
On average, customers of Kodiak Snow Removal in Kanata and Stittsville pay around $550 to have their driveways plowed all season, but this winter it will cost them a little more.
“We’re not increasing it to make a better profit,” said co-owner Allan Singer, explaining why the company has added a $2 surcharge per snowfall to its contracts. “We’re increasing it to make sure that we can still give the service that we want to give for our clients.”
With diesel prices surging, Singer says it costs thousands of dollars to fill the 80 tractors stationed at the Kodiak yard — a cost the company is hoping to offset with the surcharge. The fee is expected to generate an additional $48 per customer, based on last year’s 24 snow events.
Singer says it costs thousands of dollars to fill the company’s approximately 80 tractors with diesel fuel. (Patrick Louiseize/CBC)
“We feel that that is, let’s say, the least amount that we can charge that could be affordable for the client,” Singer said.
“We have to think of them. They’re going through the same thing as us: They’re filling up their car, their fuel for their homes, that costs them money. So we know that and we feel that.”
Worry Free Snowblowing in Navan is also making the tough call to increase prices, charging each client an extra $30 this year.
In an interview with Radio-Canada, CEO Denis Bérubé said the business has to hike prices not only because of the jump in diesel prices, but also because of the rising cost of staffing and equipment, which has become more expensive in part due to a U.S. tariff on Canadian steel.
Like with Kodiak, the additional money the company’s charging this year will only go far enough to cover his company’s fuel costs, Bérubé said.
The outlook for diesel prices over the coming months isn’t very optimistic, according to an economist.
Colin Mang, an assistant professor at McMaster University, said there’s a global shortage of the commodity amid the ongoing war in the Middle East.
“Unfortunately, because of the conflict in the Middle East, many of the Middle Eastern refineries that produce gasoline and diesel fuel have been damaged,” Mang said.
“Middle Eastern refineries, which are one of the world’s major sources of refined oil products, are only operating at about 75 per cent of their pre-war capacity.”
While diesel prices will continue to fluctuate from week to week, Mang said the capacity at oil refineries in the region is a “prolonged problem” that could last well into next year.
Kodiak co-owner Singer said that means having to adjust — sometimes by making difficult decisions like upping their prices — though he said that hasn’t slowed down bookings for the coming winter.
“It’s not scaring [customers],” said Singer. “They understand about the extra costs, and I haven’t heard anybody give anybody grief over that.”
