SOMBA K'E/YELLOWKNIFE
There is a growing call to investigate stagnant gas prices in Yellowknife as prices across the country continue to drop.

Justin Tees puts some gas in the tank at the Yellowknife Direct Co-op gas station Wednesday afternoon. He says it "drives him crazy" gas prices rarely fluctuate in Yellowknife. - Randi Beers/NNSL photo

October 2014 average gas prices across Canada Yellowknife: $1.389 Whitehorse: $1.344 Calgary: $1.148 Vancouver: $1.287 Toronto: $1.207 Halifax: $1.27 Source: Natural Resources Canada 'Fuel Focus' gasoline report

According to Natural Resources Canada, fuel prices nationwide have dropped an average of six cents per litre from last year while local prices show no change. Shell, Esso and Monkey Tree gas stations are advertising unleaded gas at $1.389 per litre while Gastown's prices are $1.419 as of Wednesday afternoon.

The city's two card locks have significantly lower prices -- PetroCanada is charging $1.28 per litre while Bluewave Energy is the cheapest option, at $1.191.

The average price per litre across the country is $1.19 as of Oct. 28.

With few exceptions, the price of gas in Yellowknife has not fluctuated since May 2011. In April of this year, the price rose at some gas stations to $1.429 for about a day. Prior to that consumers were hit with a one-day spike to $1.469 per litre on May 24, 2013.

Justin Tees, who was filling his truck at the Co-op gas station Wednesday afternoon, said the unchanging price "drives him crazy."

"I've never seen it change, my wife and I go to Edmonton often and we see the prices down there compared to here, it's crazy" he said, keeping an eye on the pump to make sure it didn't surpass $40.

"That's all I can afford," he said.

Meanwhile, Yellowknife MLAs and city councillors are exploring ways to intervene.

Frame Lake MLA Wendy Bisaro and Yellowknife Centre MLA Robert Hawkins both brought the issue up during October's capital budget session to no avail, so Bisaro wrote an e-mail to Yellowknife city council to invite them to try another angle at easing prices.

Coun. Adrian Bell announced at the Nov. 7 council meeting he will table a motion to ask Mayor Mark Heyck and city administration to reach out to gas retailers in town.

"We basically want to talk to them about pricing and ask whether or not there is an issue here," Bell told Yellowknifer.

"Is there something that can be done to change what can really only be described as frozen prices?"

Bell added it might be necessary to reach out to the federal competition bureau if negotiations with retailers are unsuccessful and mentioned consumers can also make their own complaints to the NWT Department of Municipal and Community Affairs consumer affairs division or competition bureau.

Jason Parent, vice-president of MJ Ervin and associates - a petroleum market consultant - says the price of gas in Yellowknife could end up going down if prices stay down globally for a sustained period.

He explained remote areas are less susceptible to market fluctuations because of the cost of transportation and the fact small town gas stations simply move less product.

"Depending on what the rest of the market is doing, retailers are usually happy to leave their prices in place," he explained.

"When the prices go down they are drawing better margins and when the prices go up they might get squeezed a little bit and be OK with that."

He added Yellowknife's card locks tend to have more room to breathe because they have corporate clients who buy bulk and are able to influence prices.

He says it's "unlikely" local retailers are fixing their prices.

"Typically retailers, specifically oil companies, are cautious of staying away from something that appears to be collusive . because there are huge penalties," he said.

Shell Canada, Esso and Yellowknife Co-op did not return requests for comment and Yellowknifer was unable to reach the owner-operators of Monkey Tree Gas Bar and Gastown by press time.

In February 2013, the legislative assembly passed a motion to investigate the possibility of regulating fuel prices in the Northwest Territories. In response, the government hired a consulting firm to look into the NWT market.

The firm found a "lack of compelling evidence that service station operators are charging artificially high prices for gasoline . and as a result it is not clear fuel price regulation would be an effective response."

Bell anticipates his motion will be debated in council during Monday's Municipal Services Committee meeting.