Rhino's Ramblings - What A Gas

By Robert Thomas - Opinion/Commentary

Well if you haven’t noticed it by now the price of fuel, oh hell the price of everything is on the rise as inflation kicks in.

In this past week we have seen the price of regular gas top out $2 per litre as the effects of embargoes, increasing demand and pipeline protestors finally kick in.

I am going to go with the simplified view that this seemingly apocalyptic fuel increase is all Russia's leadership's fault along with a bunch of Arab countries not overproducing and selling their oil on the cheap.

Toonie Time At The Pumps - The price of fuel is now over $2 per liter at all Moose Jaw gas stations - MJ Independent file photo

It is now hitting us hard if not to remind us of what the federal government’s carbon tax will look like in the not so distant future.

So really how bad is the increased price of gas as well as inflation?

It is so bad locally that the Moose Jaw and District Food Bank has been overwhelmed as first time clients - working people - have had to come and ask for help. With many saying they cannot afford to feed their families because of the rising cost of gas and groceries.

This in turn has hit the Food Bank as a tsunami in some awful perfect storm where COVID - 19 has prevented annual food drives from bringing in the usual amount of food.

The Food Bank in turn is making cutbacks and searching for grants as they are headed towards bare cupboards by the late fall if the situation does not improve.

That is what it has come down to.

For others who do not need the assistance of the Moose Jaw and District Food Bank the increasing price of gasoline has started to hit the bottom line and they are changing their driving habits - radically.

It is a story we broke last week followed by CBC Radio and then the Moose Jaw Express.

I even had one person come up to me who told me when he drove past the Food Bank he saw someone come out with a hamper who should not have been there.

I was about to cringe and think here comes the complaint about fraud and abuse. But rather it was something quite different. The complaint was he knew the person coming out of the food bank and the man was a hard worker and his wage should cover it and times are tough.

The rising cost of fuel has many combining what use to be multiple trips into a single trip. It is all about saving money as the rising cost of fuel but it is also starting to cut down on impulse buying.

Impulse buying local retailers depend on. Every trip you make to pick things up is another opportunity for retailers to market you whether you are in their store or just driving by.

The rising cost of fuel is hitting people socially as thoughts of going out on leisurely drives with the family have been cut down.

Food Prices Are Increasing - In the last year the average price of groceries has risen 9.4 percent locally. The grocery shelves are full but the prices are up. - MJ Independent file photo

And many people are telling me they have or are seriously cutting back on road trips. Dreams of vacations to the northern part of the province or to British Columbia are now that just dreams.

If it isn’t the local price of fuel killing it for many, the price of fuel in BC is certainly something to be aware of.

For local hoteliers the thoughts of people sticking close to home has to send shivers down their spines.

After two years of COVID - 19 restrictions hitting the industry hard there was hopes the hotels would be full this year as people would be back out on the road. If people don’t travel but stick close to home their will be less demand for their services.

How do I know this? Well I know people in the industry.

I haven’t heard much from restaurants, who remain upbeat about it all, but there has to be some give in there as they are hit with rising food and labor costs.

It is anyone's guess how much a 10 percent increase in the cost of food provincially has hit their businesses.

Additionally how many people are just staying home to eat because of rising gas prices and inflation? It is cheaper to eat at home ands many people learnt to cook (nd got accustomed to it over the pandemic.

I will be honest and tell you I usually eat out often and should know the answer but because I have cut back and not dining out as much I don’t know.

I did talk to one local upper end trendy restaurant and they tell me the business is hit and miss right now. And quietly told me price increases are starting to hurt.

Now my own personal cutbacks are not 100 percent due to inflation but rather I took a major plunge when it comes to photo and video equipment.

If you haven’t noticed yet the quality of the new pictures I MJ Independent are sharper, more intense and show more reactions. The photos are also more on top of the action.

That’s because of a certain company called Nikon and the move away from just using a smart phone.

Glass is expensive is the best I can say.

But with that said I can tell you this about the cost of gasoline - people filling their tanks now often tops out well over $200.

For my little circa 2000 crap box a fully empty tank took me just over $50 to fill in January now tops out over $85.

And it is not just the local consumer and businesses being hit hard with higher fuel prices. It is also impacting at the government level.

This past regular Moose Jaw Council meeting saw Councillor Jamey Logan asking about the effects of rising fuel costs and how a $300,000 unbudgeted hit of rising fuel costs is not sustainable under the present budget.

A good portion of the City’s operating expenses when it comes to fuel is used by Moose Jaw Transit.

Yes, the buses, where there are monthly passes, is facing the strain of rapidly rising fuel costs just as I am just starting to hear people speaking about moving more to transit with a monthly pass. It is only whispers but in the end for many may be the reality.

Yup it is starting to get tough.

Now we city slickers can take advantage of biking, public transit and shopping nearby to reduce gas consumption and save money in highly inflationary times.

The same cannot be said about farmers and the transport industry.

This is the year of the most expensive crop ever.

With Russian and Belarusan fertilizer - nitrogen is a biggie - off the market there is an added impact to the high fuel prices.

For truck drivers - many of them lease operators - I cannot even imagine the pain they are going through at the present time.

But there are good notes out there the local housing market continues to be strong.

But the question needs to be asked for how long?

Rising interest rates to shrink the money supply and drive inflation down are starting to kick in. People buying now are likely facing higher interest rates when they renew their mortgage in five years time.

There is already major market corrections in the major Canadian cities as housing values are dropping and yes there is a lot of buyer's remorse out there.

The Moose Jaw housing market is to some extent not hinged to the once on fire Toronto and Montreal housing markets but with that said things like financing is tied to them.

I am also reading more economists pointing to the R word a lot. And in Moose Jaw's case sadly I am not talking Referendum but rather Recession.

It has even the City of Moose Jaw reserves which are now heavily invested in the markets and not bonds not earning the rate of returns the City had been hoping for.

Here is a tip - whenever you hear a Councillor state that Moose Jaw is a corporation that will live forever and not a person who needs the money now - the market is down and the City's investments are right now taking a bit of a breather.

It all points to a downturn something high inflation is seemingly always followed by. On this point I hope I am wrong.

In the end it all leaves me thinking how can we as an individual stop this?

The reality is we can't. We are helpless and whether we like it or not living paycheque to paycheque before inflation of the past year does not bode well for working people. At the present time people are increasing personal debt to make up for inflation but you also hit a borrowing limit.

Something that even the City of Moose Jaw is fast approaching with the decision to finance their share of the upgrades at the Bufflalo Pound Water Treatment Plant.

What does the future hold? Watch your nickels and likely more people cutting back.

Go for a walk in the park it is shown to reduce stress and doesn't really cost you anything.

Oh yeah except for a good pair if sneakers and the brand and model I always buy just went up ten bucks a pair.

A person just cannot win….