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Gas price drop delayed at Yk stations
Katie May Northern News Services Published Wednesday, August 6, 2008
A weekly pump price survey released July 29 by MJ Ervin and Associates showed average gas prices in most major cities across Canada were steadily decreasing last week, while Yellowknife's average price of regular fuel was up four cents to $1.53. By Aug. 3, prices had decreased to around $1.49. Michael Ervin, president of the Calgary-based consulting firm, said northern cities such as Yellowknife and Whitehorse often experience lengthy delays in the ups and downs of pump prices because of increased shipping distances and selling times. The same survey showed Whitehorse's average gas prices dropped 1.5 cents. "Prices in Yellowknife generally don't follow wholesale markets as closely or as quickly as other markets in southern cities," Ervin said. "When a gas station in Yellowknife receives a tank of gasoline, it may take a week or two (to sell)," compared to a station in Toronto, he said. Stations usually have to sell a good portion of their supply before they can start selling fuel at the new - sometimes lower - price. Ervin said the delay works both ways - when prices are increasing countrywide, pumps in Yellowknife are often cheaper for a few days. He wouldn't speculate on the future of the fuel industry, but he said he thinks "the trend is going to continue downwards." As for Yellowknife drivers, most are still at the mercy of the pump price regardless of market trends. Resident Ron Dodman filled the tank of his pick-up truck for $200 on Sunday afternoon. Last year, the same amount of gas cost him $120. He said he doesn't really try to follow the fluctuating prices. "I'm still going to fill it up anyway," Dodman said. "One day I was going to fill it up and I thought 'no, I'll wait for tomorrow,' and the price went up five cents that night." |