SOMBA K'E/YELLOWKNIFE
Last week, cities across the country were reporting the lowest prices at the pumps since March yet Yellowknife drivers once again did not experience the same relief.

Gas prices in the city jumped five cents this week after dropping to $1.18 per litre. Coun. Adrian Bell says less competition among retailers in the territory means prices do not fluctuate as much or as quickly as they do in the south. - Meagan Leonard/NNSL photo Gas prices (Aug. 25-26) Aug. 25 Yellowknife: $1.28/litre Whitehorse: $1.29/litre Edmonton: $1.07/litre Canada: $1.14/litre Aug. 26 Yellowknife: $1.38 Whitehorse: $1.36/litre Edmonton: $1.16/litre Canada: $1.32/litre Source: Natural Resources Canada

According to data collected by Natural Resources Canada, the average price across the country was $1.141 per litre on Aug. 25. While prices in the city dropped down to $1.18 per litre, Edmonton dropped to $1.07 leaving some scratching their heads.

Yellowknife Coun. Adrian Bell has been advocating for more transparency among gas retailers and said part of the problem is what he calls a lack of competition.

"In Yellowknife, we don't have a truly competitive situation," he said. "If you look at ... other similar-sized cities, they've got many more gas retailers than we have ... for a town of 20,000 to have only five retailers is very unusual."

Dan McTeague, senior petroleum analyst with Gasbuddy.com, told Yellowknifer that because retailers in the North must purchase gasoline in bulk, they often don't have as much leeway when it comes to fluctuating prices.

"The big difference is ... having to buy for a longer period of time at a certain fixed price from their wholesaler," he explained. "The cost of shipping has a lot to do with why the price is where it is."

However McTeague, like Bell, said he suspects the lack of competition in the North opens up the possibility for hedging among retailers and that he has noticed gas stations in the south barely turning a profit while those in the territories thrive.

He estimated with taxes, wholesale gas costs $0.70 per litre in Hay River as of Sept. 1, with an additional 45 cents tacked on for transportation. If gas is $1.30 in Yellowknife, retailers which purchase gas from Hay River could turn a significant profit.

"You're doing fairly well as a retailer, you're making good money selling gasoline and that's rare in terms of many other communities where it tends to be not just lower prices but cutthroat prices without much in the way of a retail margin," he said.

Bell said part of the reason for the lack of competition is that the city does not have enough commercial zoning space which would allow for more gas bars to open - especially in the downtown core.

"We won't allow any in the downtown or other parts of town," he explained. "It's a problem that doesn't have an easy solution."

Last winter, the Department of Municipal and Community Affairs (MACA) contacted gas retailers in the city to determine how prices were being established. Yellowknife Co-op and Esso lowered their prices afterward.

Frame Lake MLA Wendy Bisaro was one of those advocating for lower prices and said she is happy to see the numbers have since dropped to become more in-line with nationwide rates, but wishes there was more in the way of competition or push to lower prices.

"I don't understand this system of gas pricing but I'm very glad to see that it's down," she said. "I would like to see individual gas station owners or operators have a bit more flexibility in what price they can charge and have the capability to start a gas war."

She also said she understands the cost of providing goods and services up here is substantially greater than in the south. She said current prices seem to be a happy medium - appeasing drivers while keeping retailers afloat.

"I remember when the price was way down - as low as it got - at that price, our guys weren't making any money," she said. "I understand that it's expensive to get stuff up here so I can't see us matching some markets like Toronto ... because they have wars regularly down there. But in my mind, $1.33 (per litre) is gouging and $1.18 (per litre) is manageable."

Yellowknife Co-op, Shell, Esso, Gastown and the Monkey Tree Gas Bar declined Yellowknifer interview requests.

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