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SOMBA K'E/YELLOWKNIFE - Gas prices in Edmonton have dropped as low as 84 cents/litre and some Yellowknifers are wondering why they're paying 30 cents more.

"I was in Edmonton recently and it was 83.9 (cents) and historically there's been a 10 cents per litre gas difference between Edmonton and Yellowknife," said Chris Johnston, CEO of the Metis Development Corporation.

Metis Development Corp CEO Chris Johnston fills up his vehicle at Petro Canada's cardlock holder station - at $1.02/litre this week, it's the cheapest gas in town. - Lauren McKeon/NNSL photo

"People don't realize how much the price of gas impacts businesses ... especially when you're trying to get jobs or compete with southern companies. It almost makes it impossible.

"I have no problems supporting Northern businesses, but (not) when it's rape and pillage at the cost of 30 cents a litre," he added.

Johnston said he regularly buys gas at Petro Canada because, as a cardlock holder and business owner, it saves him a considerable amount.

On Tuesday, he paid $1.02/litre compared to $1.10/litre to $1.13/litre charged everywhere else in Yellowknife.

Cardlocks are available mostly to business owners - those interested must fill out an application and possess a credit card - and Petro Canada is able to keep costs down with them mostly because, with no attendants and no station, there is little overhead cost.

"That is the cheapest place in town to buy gas. I tell everybody I know to buy gas there," said Johnston.

He added he would welcome federally-regulated gas prices - an issue which came up in the legislative assembly in early October.

That was when Kam Lake MLA Dave Ramsay called for more consumer protection at the pumps.

"As a member of the legislative assembly, whether I'm at the grocery store, the gas bar, or wherever, people are commenting on the price of gas and it was very, very high (then)," said Ramsay.

"Say if (the world price of oil) were to jump $25 a barrel today, tomorrow the prices would go up at the pump - it's that quick. There's no corresponding decline when they fall."

While Ramsay said federally-regulated gas prices should be "a last resort" because it has both pros and cons, he does think an investigation into why price drops lag at the pump here would be beneficial.

But one analyst said there's an easy answer: things are just more expensive here.

Catherine Hay, vice-president of Calgary-based MJ Ervin and Associates, has access to more than 20 years of pump prices in cities across Canada, which her company analyzes by the week.

"The relationship between prices in Yellowknife and the rest of the country has not changed," she said. "It's been this way for year after year.

"Prices have gone down in Yellowknife and they've gone down by the same amount (as other markets)."

Other markets just never went up as high.

Hay said data show Yellowknife gas prices have dropped from almost $1.60/litres in early September to $1.10/litre this week. Comparatively, Toronto has dropped 50 cents as well, but from $1.30/litre to $0.80/litre in the same time frame.

Toronto is able to charge a cheaper price for its gas because "the scales that are realized in bigger markets allow them to survive on a lesser markup," she said.

To put it in perspective, Hay compared gas to eggs.

"(Northerners) feel it when they buy a dozen eggs too. Or when they go out for Saturday morning breakfast and have a couple eggs and bacon and a piece of toast and coffee," she said.

"I can do that in Calgary for probably $5 and I don't think you can do that in Yellowknife for $5, for very, very similar reasons."