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Paying more for old gas Nathalie Heiberg-Harrison Northern News Services Published Friday, May 13, 2011
Gas is currently priced at $1.389 per litre across Yellowknife, which puts it above the Canadian average of $1.3362 per litre. Montreal is reporting some of the highest gas prices in Canada with $1.459 per litre. Jimmy Kong, owner of the Monkey Tree Gas Bar, said gas prices have risen there recently because they switched from using old inventory to a newer, more expensive stock they bought right before the ice crossing closed April 11. He added they won't change their prices again until after the Merv Hardie ferry brings them their next shipment. "When we get the new stock, that's the time for us to adjust the price," he said. Saif Jutt, owner of the Shell Canada service station in Yellowknife, said they raised their prices two weeks ago after getting notification from their head office in Calgary. The one exception in town is the Yellowknife Direct Charge Co-op gas bar, where prices have remained the same since April 11 and members still recieve a nine cent per litre discount. "We're the good guys," said Co-op assistant general manager Justin Nelson. "Our competitors are raising the price of gasoline and they're making more money. (Our customers) would not be happy if we did that, and I don't blame them. I'm a Co-op member too." Nelson said they stocked up on nearly $1 million in gas before their shipment cutoff, and it would be disrespectful to their members if they tried to make a profit off of the spring breakup. Lorne Sutherland, a Yellowknife resident who buys "probably 99 per cent" of his gasoline at the Co-op, said he often sees a jump in prices during the spring. "Do I think it's fair? No, I don't." Noelene Byrne, who moved to Yellowknife a year ago, said she's happy her main mode of transportation is her bicycle. "It's really ridiculous," she said of the rising gas prices, adding, "It seems highly political." Co-op general manager Ben Walker said it's likely that once the horn sounds for the Merv Hardie ferry, the gas bar's prices will jump up with the rest of the gas stations. Esso manager Hafiz Shakoor said their prices are holding steady now, but he can't say if that will change before the ferry comes in. "I know about now, but I don't know about tomorrow," he said. Mike Dove, who organizes major gas deliveries for Petro-Canada in Yellowknife, said their prices are "locked in" during breakup. "We don't normally bring our prices up to date until we know the ferry's in operation." In response to ballooning gas prices, federal Industry Minister Tony Clement announced the government will be creating a parliamentary committee to ask hard questions of the petroleum refining, distribution and retail companies. "No one can understand why last year, when oil per barrel was around $140 or $150, we were paying $1.37 per litre, when this year oil is south of $98 a barrel and yet we're paying more," Clement said in a press conference in Toronto Thursday. The Merv Hardie ferry is expected to be in operation Sunday, May 15.
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