Yellowknife (May 17/04) - Even before the Merv Hardie ferry gets moving, Yellowknifers are already paying more for gas.

As the tanks at some Yellowknife gas stations run dry, others such as Shell and the Monkey Tree Gas Bar have started selling gasoline for 99.9 cents a litre.

Arthur Boutilier was out riding his bike this past Friday. Other Yellowknifers might soon be joining him. - Brent Reaney/NNSL photo

Gas prices previously had been hovering around 93 cents a litre, but the Yellowknife Shell station raised the price by seven cents within a day, according to the station manager.

The Petro-Canada station has also increased their gas price to 99.9 cents a litre.

Northern gas prices are commonly among the highest in the country, but drivers didn't expect price hikes until new shipments started to make their way across the Mackenzie on the Merv Hardie ferry.

"It's definitely ridiculous. I can understand they're going to pay more for the stuff coming in, but this stuff is already in town," said Omar Shaben, a Yellowknife cab driver.

But Shell Canada doesn't consider the original purchase price of gas when setting its rates, said Denita Davis, a spokeswoman for Shell Canada.

The company sets the price of gasoline for most of its stations using a combination of factors, including the price of crude oil and local market conditions, Davis said.

"We're starting to see the high prices (for crude oil) filtering down to the pump," Davis said.

Regardless of how the rates are set, Range Lake MLA Sandy Lee says she has been busy dealing with constituents who are angered by the price increase.

"I have people writing me outraged. They're calling it gauging," Lee said.

Other Yellowknifers are echoing the concerns of Lee's constituents.

"The gas had to be here already. They're just gauging the public," said Dave Jobin.

Others are happy the hike isn't higher.

"I was talking to my dad in Saskatchewan and he said it's $1.05, so I figure since it's only a dollar here, we're laughing," said Shannon Hand.

Yellowknifers are among many Canadians being forced to pony up at the pump.

Customers in Vancouver are paying 98.9 cents a litre, while drivers in Edmonton shell out 88.5 cents a litre, Davis said.

Old gas in the pumps

Ed Zaragoza, owner of the Winks/Husky gas bar, sets his prices according to when the gas was purchased. He doesn't understand his competitors' current pricing.

"How can you raise the price when the gas has been sitting here for a month?" Zaragoza asked.

Even though the Winks owner expects to run out of gas sometime today, he says the price isn't going to change until the new shipment arrives.

The Co-op didn't raise its price in the days before they stopped pumping last Wednesday. Before running out, premium gas was sold for regular prices, said Co-op gas bar manager Bonnie White.

For those retailers waiting for re-fills, the ferry is expected to be in the water either today or sometime tomorrow, assuming weather conditions remain stable, said Bob Kelly, spokesman for the department of transportation, in a news release sent out Friday.