Mike
Well-Known Member
The price of diesel fuel could spike this summer as new biofuel legislation kicks in, with the cost trickling down to consumers, the Canadian Trucking Alliance warns.
As of July 1, diesel must be two per cent biofuel -a rule that came into effect in Alberta at the beginning of this month. "This could also lead to higher prices to consumers for all goods," the CTA said in a release, noting that 90 per cent of Canadian goods are moved at some point by trucks.
The biofuel requirement could add between one cent a litre and eight cents a litre to the price of filling up, based on the U.S. experience, the alliance said, on top of the already escalating cost of diesel because of soaring oil prices.
The cost of the fuel has already jumped 37 per cent in March over a year earlier, the CTA said. Don Wilson, executive director of the Alberta Motor Transport Association, said five days into the Alberta change is too early to tell what the impact could be.
Read more: New biofuel rules may spike diesel price
As of July 1, diesel must be two per cent biofuel -a rule that came into effect in Alberta at the beginning of this month. "This could also lead to higher prices to consumers for all goods," the CTA said in a release, noting that 90 per cent of Canadian goods are moved at some point by trucks.
The biofuel requirement could add between one cent a litre and eight cents a litre to the price of filling up, based on the U.S. experience, the alliance said, on top of the already escalating cost of diesel because of soaring oil prices.
The cost of the fuel has already jumped 37 per cent in March over a year earlier, the CTA said. Don Wilson, executive director of the Alberta Motor Transport Association, said five days into the Alberta change is too early to tell what the impact could be.
Read more: New biofuel rules may spike diesel price
