Gas prices the top worry for small businesses hurt by COVID-19: CFIB

In this article:
Gas prices have soared in Canada in recent weeks as the Russia-Ukraine conflict casts uncertainty over global energy markets.
Gas prices have soared in Canada in recent weeks as the Russia-Ukraine conflict casts uncertainty over global energy markets. (Bing Guan / reuters)

Gas prices and fuel costs are the top concerns for most small businesses in Canada, many of which have yet to see their sales rebound to pre-pandemic levels, according to the Canadian Federation of Independent Business (CFIB).

The industry group representing 95,000 small businesses across the country gathered 835 responses between Feb. 1 and Feb. 11, prior to the recent price spike driven by Russia's attack on Ukraine, and related sanctions on Russian oil.

A three-month view of average retail gas prices in Canada.
A three-month view of average retail gas prices in Canada. (GasBuddy.com)

According to the CFIB, 64 per cent of small businesses say fuel prices have become their biggest concern. In a separate survey, the group found 62 per cent of small businesses say rising prices in general for necessities like fuel, food and insurance are having a significant impact.

The price-tracking website GasBuddy shows the average price per litre for gasoline across Canada was $1.775 at 9:15 a.m. ET on Thursday, up $0.521 from last year's national average.

"Small businesses may be on their way out of the pandemic, but it will be a slow and difficult climb," CFIB senior vice-president of national affairs Corinne Pohlmann stated in a news release on Thursday.

The group is calling on Ottawa to freeze the federal carbon tax increase, set to come into effect on April 1. In Ontario, the policy raises taxes on a litre of gasoline from $0.089 to $0.11.

"Small businesses need a chance to regain their breath and pay down their debt. This is not the time to be adding any new costs to struggling small businesses," Pohlmann added.

A Yahoo/Maru public opinion poll conducted between Feb. 18 and Feb. 20 found 56 per cent of respondents believe current prices at the gas pumps are here to stay. International events, like the ongoing conflict in Ukraine, was the top reason given to explain higher prices.

Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.

Download the Yahoo Finance app, available for Apple and Android.

Advertisement