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Fuel hits profits
Entrepreneurs trying to cope with rising cost

Derek Neary
Northern News Services

Fort Simpson (Oct 06/00) - The rising price of fuel has some Deh Cho entrepreneurs concerned about the bottom line.

In Fort Providence, Albert Norwegian is wondering how much demand there will be for firewood this winter. Norwegian has a wood-camp near Bouvier Creek and has been hauling wood to Yellowknife for the past several years. This season, he's going to have to jack up his rates to cover the extra expense for fuel.

"Probably some people will look twice before paying the price for wood," he said.

Two years ago he said he paid $160 for diesel for a run to Yellowknife and back. By the end of last winter, he said expenses for a round-trip had increased to $240. Fuel prices have climbed even higher since then, he noted.

In his home community, the demand for firewood has been declining as more furnaces are installed in homes, he added. In the early 90s, he used to supply 75 cords of wood for the community, but last year only 15 cords were needed, he said.

With a wife and three children to provide for, Norwegian is looking to the future with trepidation.

"I don't know what I'm going to do; my head is spinning," he said. "That's what we live on. Otherwise, I've got to start up the skidoo and go trapping. That's what I was thinking. I might come to it yet."

Unexpected jump

Last April, Pat Rowe was the successful bidder on a four-year school bus service contract in Fort Simpson. He said he studied fuel prices from previous years and tried to estimate how much they would climb over four years. He never anticipated what he's seen over the past several months.

"If it takes a jump like now, it's not good... It starts eating into your livelihood, that's what it does," he said.

Most the other business expenses, such as tires, engine wear, etc., can generally be accounted for but fuel is a wild card, he acknowledged. To lessen the chances of being hurt by high fuel prices, one could submit a higher bid in the first place, but that's a gamble, Rowe noted.

"It puts you out of the market pretty fast," he said. "I put a little bit on (the bid) for a little rise in fuel, but it better not go up much more."

Amongst other business ventures, Rowe also operates a coach bus. However, with that service he is able to reflect the higher cost of fuel in the rates he charges.

"It costs all the way around... you can't keep the same prices forever," he said. "It's not gouging. Everybody just has to look around and see how much more it costs them at the pumps and know it costs us too."