Spiking gas prices have the city of Ottawa heading towards a funding shortfall.
The cost of filling up vehicles from OC Transpo buses to police cruisers and ambulances is costing more than anticipated. According to the city of Ottawa, the cost of fuel not purchased in a bulk or "hedged" contract purchase was budgeted at $0.88/L Diesel and $1.028/L non diesel.
On Thursday, gas prices hit 139.9, nearing the all-time high of 145 set in June 2014.
"The recent increase in gas prices will primarily impact the forward purchase contract prices that we are purchasing for 2019 and those increases will be taken into consideration in the 2019 budget," wrote Isabelle Jasmin, Deputy City Treasurer Corporate Finance in an emailed statement. "The increase in gas prices in 2018 will impact the cost of fuel for the portion that is not hedged, but a greater proportion of fuel is hedged than not.”
The Ottawa Police Service is in a similar situation. It budgeted gas at $1.08/L and is now roughly $400,000 over budget.
"Within the Ottawa Police Service we have to cut something else to make up for that shortfall," said Ottawa Police Chief Charles Bordeleau. "We don't know if the prices are going to go up and if they go up past that 140 mark that will be even more of a problem for us."
The pinch at the pumps has some consumers thinking of ditching diesel and gas all together. Carl Suri has been looking at hybrid vehicles for a while but said now he is seriously shopping.
"It's kind of ridiculous," he said about the price of gas. "The last time I did the math it's about a 30% savings. It's pretty significant."
