As food prices continue to climb across the province, the Saskatchewan Trucking Association (STA) is calling on the provincial government to scrap what it calls an “unfair road tax” on diesel fuel used to power refrigeration units in truck trailers.
The STA says trucking companies are being forced to pay a 12-cent-per-litre road tax on diesel used to run refrigeration units — equipment that never actually touches the road, while other industries such as agriculture and forestry are permitted to use tax-exempt dyed diesel for similar off-road operations.
“This extra road tax... is not only unfair because these refrigeration units never touch the road,” said STA Director of Operations and Member Services George Henderson in a release, “but because of how these additional taxes from the government are driving up the price of food in the province.”
According to the association, each refrigeration unit costs approximately $24,000 annually to fuel, with the costs being passed on to consumers through higher food and medication prices. StatsCan data shows the cost of food has jumped nearly four per cent in Saskatchewan over the past year.
The STA is urging the government to immediately allow tax-reduced dyed diesel to be used in refrigeration units, which are critical to transporting perishable goods and medications across Saskatchewan.
“It is crucial that government put the priorities of Saskatchewan people first,” said Henderson. “Driving Saskatchewan forward starts with a commitment to stop raising the price of food.”
As of now, the provincial government has not issued a response to the STA’s request.