P.E.I. farmers feel the pinch as diesel prices continue to soar

·1 min read
Farmers are paying $2.61 per litre for diesel to put in their tractors. (Shane Hennessey/CBC - image credit)
Farmers are paying $2.61 per litre for diesel to put in their tractors. (Shane Hennessey/CBC - image credit)

The rising price of diesel is causing some concern among farmers on P.E.I. who use it to run their tractors and other machinery.

The cost jumped another 11.5 cents a litre over the weekend, the third increase in three days.

Diesel is now $2.61 per litre, a record high for the Island, and about 14 cents a litre more expensive than in New Brunswick.

Donald Killorn, executive director of the P.E.I. Federation of Agriculture, said the high prices affect different farmers in different ways.

"With the potato crop going in the ground, that's very problematic for them. They require a lot of diesel right now, and so they're feeling that immediately and they have to pass that along to the consumer in the cost of their crop," he said.

"Now, for a dairy farmer or another farmer who's in a supply management system where the price is fixed, when they see that diesel price go up, that has a direct impact on their bottom line."

The price of fuel, including gasoline, diesel and furnace oil, is set by the Island Regulatory and Appeals Commission.

Killorn said he would like to see IRAC remove the minimum price on diesel, which could bring prices more in line with those on the mainland.

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