As Saskatchewan families continue to grapple with soaring grocery prices, the Saskatchewan Trucking Association (STA) is urging the provincial government to eliminate what it calls an "unfair road tax" on diesel fuel used in truck trailer refrigeration units.
The STA argues that trucking companies are currently being unfairly taxed on diesel fuel powering refrigeration units, despite the fact that these units never make contact with public roadways. While other sectors such as agriculture and forestry are permitted to use tax-reduced dyed diesel for non-road equipment, the trucking industry remains excluded from this exemption.
“This extra road tax on diesel fuel used for refrigeration units on truck trailers is not only unfair because these units never touch the road, but also because the additional costs are contributing to rising food prices in the province,” said George Henderson, STA Director of Operations & Member Services.
According to the STA, each truck refrigeration unit costs approximately $24,000 more annually to fuel due to the 12 cents per litre provincial road tax. These units are essential for transporting perishable goods and critical medications across Saskatchewan, and the added costs, Henderson says, are ultimately passed on to consumers.
“It is crucial that government put the priorities of Saskatchewan people first and commit to stop raising the price of food and critical medications,” Henderson added.
The STA is calling for the immediate approval of dyed diesel for use in refrigeration units, arguing that removing the tax would be a meaningful step in curbing inflation and supporting Saskatchewan families.
"Driving Saskatchewan forward starts with a commitment from the province to stop raising the price of food for Saskatchewan people," the STA stated.
The association continues to advocate for policy changes that reflect the economic realities of the industry and the everyday impact on Saskatchewan residents.