DEH GAH GOT'IE KOE/FORT PROVIDENCE - Delays in upgrades to fuel storage tanks at the Big River Service Centre have caused an increase in gas prices at its pumps and motorists are fuming.

An increase in gas prices at the Big River Service Centre outside of Fort Providence caused by a delay in upgrading fuel storage tanks has drawn the ire of motorists. - Roxanna Thompson/NNSL photo

Ian Leishman of Kakisa pulled into Big River during the last weekend of March to fill up his Jeep. With a quarter of a tank left Leishman expected it to take a maximum of $55 to fill the rest of the 60 litre tank. He was surprised when he paid more than $80.

"I thought the pump was broken or something," he said.

Leishman was more perturbed when he paid $1.22 per litre at the Northern Store in Fort Providence on March 30 compared to the $1.51 charged at Big River, located only five kilometres away on Highway 3.

Speaking to Deh Cho Drum Leishman said he believes the only reason the price was 29 cents higher at Big River is because most motorists have to stop there to fill up on their way to Yellowknife.

"Everybody who stops there is getting ripped off," he said.

"They're just doing that because they know they can."

Leishman said he's telling everyone he knows to take the time to drive into Fort Providence to fill up at the Northern Store and has friends who are passing on the same message.

Will Wilkes has been hearing these assumptions a lot lately from motorists.

Every other person who comes into Big River to pay for gas asks why the service centre is gouging them, said Wilkes, the assistant general manager.

The reason behind the disparity between Big River and the Northern Store's gas prices is very different than what people assume, he said. For almost two years the centre's gas price stayed around $1.22 per litre, almost identical to the Northern Store's, said Wilkes.

During that time Shell, which the service centre is affiliated with, bought their gas from Bassett Petroleum Distributors in Hay River. Shell changed suppliers to RTL Robinson Enterprises Ltd. of Yellowknife in February.

When the switch was made RTL said it couldn't deliver to the service centre because its fuel storage tanks didn't meet current fire codes, Wilkes said.

No one in the territory could be contracted do the necessary upgrades to the tanks and it wasn't until mid-March specialists came in from Alberta to do the work. The tanks now have to be inspected by RTL before delivers will begin.

To keep the centre open in the meanwhile Big River continued purchasing from Bassett but without the Shell bulk discount. As an independent buyer the centre has been paying approximately 40 cents more per litre, said Wilkes.

Big River hasn't changed its mark up, the increase at the pumps is just because of the higher cost Big River is paying for the gas, Wilkes said.

"We can't afford to sell it any cheaper than we are," he said.

Once Big River starts getting fuel deliveries from RTL, Wilkes expects the price at the pumps to revert to close to its previous level. In the meantime, he's worried even dedicated customers will see the higher prices and decide to fill up an extra jerrycan so they can avoid stopping at Big River in the future without realizing the increase was only temporary.

Those who make the trip to the Fort Providence Northern Store instead to fill up won't be seeing as large a savings as they may expect.

The price of gas was $1.29 at the store most of last week but was scheduled to rise to $1.45 this week, said Michael McMullan, the executive vice-president of The North West Company.

The Northern Store bases its gas prices on the what it costs to buy gas from its supplier, freight costs, NWT and federal taxes, and operational costs. The price is increasing approximately 16 cents this week because the price of the raw material is also rising, McMullan said.

"We don't have the clout to influence that rack price at all," he said noting that with only 37 gas operations across the North, the Northern Store isn't in the same league as other companies like Petro Canada.

McMullan said it is unusual to have such a large gap in prices between the Fort Providence Northern Store and Big River. It will probably be temporary, he said.

The Northern Store reevaluates its gas price weekly and makes changes at that time.

"It's very volatile," he said.

When the price of oil comes down the cost savings will be passed on to Northern Store customers through lower prices at the gas pump, said McMullan.

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