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    NNSL Photo/Graphic

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    Gas price drop delayed at Yk stations

    Katie May
    Northern News Services
    Published Wednesday, August 6, 2008

    SOMBA K'E/YELLOWKNIFE - Whether gas prices across the country are going up or going down, it usually takes a while for pumps in Yellowknife to catch up to trends, according to a petroleum market analyst.

    NNSL Photo/Graphic

    Ron Dodman filled up his truck with gasoline for $200 last weekend. He said he doesn't worry too much about changing gas prices. - Katie May/NNSL photo

    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."