Text  
Email Print Letter to Editor Share
Red Deer Advocate

RV dealers see silver lining in rising fuel prices

It’s an ill wind that blows nobody any good.

It seems the endless escalation of gas prices that saw regular gas at $1.23 a litre in Red Deer this weekend is good for the recreational vehicles business.

“The nice thing about our industry is that it’s still the cheapest way to holiday,” said Darren Tam, sales manager at Red Deer’s Paradise RV.

“With the price of gas going the way it it is, it’s probably going to help our industry.

“Who wants to drive to wherever they’re going to spend more on hotels?”

“If anything (the rising gas price) is going to help us,” said Tam.

The fact that Red Deer is home to a lot of people doing well in the oilpatch doesn’t hurt.

Many of them have the big trucks that can pull some of the larger units.

“Just last week we sold four 36-foot (12 metre) fifth-wheels,” he said.

And his company has bought 14 massive class C motorhomes and put them on its various Alberta lots, confident they’ll sell.

They sit on an International chassis, said Tam and run on diesel.

“They get 10 to 12 miles to the gallon,” said Tam. (10 mpg is about 28.2 litres per 100 km).

Right now diesel fuel is selling for slightly more than gasoline.

Long haul truck driver Carl Pidskalny of Wetaskiwin was much less enthusiastic about the cost of fuel, as he parked his semi on Gasoline Alley to grab a burger.

“We are getting screwed by the government,” said Pidskalny.

“They could lower the price because Alberta has lots of oil.”

In fact Pidskalny said he hauls a lot of oilfield equipment.

His monthly fuel bill has soared from $2,600 not so long ago to $7,000 now.

His next trip is to South Carolina but the story is the same in the United States, where their smaller-than-Imperial gallon is selling for $5.

“It’s ridiculous,” said an exasperated Pidskalny.

The result of fuel costs is that his customers must pay more and they in turn have to find ways to recoup that expense.

That could be by way of increasing the costs of their product or service or perhaps laying off workers, he said.

He has also noted a panic-buying trend in the United States where people are stocking up on goods, largely food, because they fear the price will go up anytime.

Dick Anderson of McGrath was another driver Saturday on Gasoline Alley stopping for a bite to eat.

He was hauling an enclosed trailer packed with his two children’s furniture and that of a friend of theirs. The three have just finished school in Edmonton and were heading home.

“I’m thinking that my gas may cost $25 more than it would have a month ago,” said Anderson, referring to the trip.

“I hate to pull into the pumps. It makes me cry,” he said with a wide smile.

Rising gas prices are affecting Patrick O’Connor’s business, too.

He owns Direct Courier, based in Springbrook and serves a number of regular customers as well as more sporadic ones.

He said it’s a bit early to know exactly how hard the prices are going to affect him, though he’ll probably have to hike his rates eventually.

In the meantime, one thing he has been considering is buying a bigger truck.

It would mean he could haul more items per run and in the long run, save money, he said.

Contact Penny Caster at pcaster@reddeeradvocate.com

COMMENTS

COMMENTING ETIQUETTE: To encourage open exchange in the reddeeradvocate.com community, we ask that you follow our guidelines and respect our standards. More on etiquette...

Most Read Stories

Recent Comments