Clear Full Forecast

P.G. Gas Prices Finally at Canadian Average

By Ben Meisner

Thursday, July 14, 2005 04:00 AM


What ever Prince George fuel customers have been doing of late, it has been working, because gas prices in the city of Prince George suddenly are the 26th lowest in the country. 

The average price in Canada is 95.7 cents a litre.  We have constantly been number three right behind Whitehorse which today is paying 105.4 , and Yellowknife at 103.9,  Now, Montreal shares third place with Cornerbrook,  as both cities are paying 103.2  

Prince George is finally  on par with the Canadian average  which last week stood at 95.7 . 

You must keep in mind that the Refinery, (Husky in this case in the city) has not been the culprit. 

The high fuel prices in the past have come as a result of the huge mark ups made by the gas companies at the retail level, 11.8 cents in Prince George, compared to 4 cents as an average across Canada. 

What ever the citizens of the region have been doing as of late seems to have had some effect, in that we can happily report that we are not at number three this week.
Previous Story - Next Story



Return to Home
NetBistro

Comments

Small consolation IMO.

Clearly we need more independent or big box competition in this town. Maybe the Gateway pipeline will create some competitive competition on the supply side in the next couple of years?

I would like to see the City, Canfor, Lomak, and maybe the PG Truckers Association put some pressure on the gas companies with their large accounts in determining the markup gas companies are making in this region. We need the big purchasers to become community leaders on this issue IMO.

Maybe a community owned gas card co-op run by the PG Chamber of Commerce?

United we stand, divided we fall.
CRAP!
Krisp its the independent retailers and the big box retailers that are not the traditional large gas companies that bring in the gas wars. I agree they have no other relation.

IMO a fair rate for our gas benefits all in the comunity. I would suggest a gas card that is issued to all members in the community like a sort of gas union. If the City or Chamber of Commerce took the lead they could negotiate on behalf of all members for the bulk card discount. Eventually all the other gas stations would have to match the price to keep the business. When other gas companies come on board the system would include and work for them as well.

The idea would be to put pressure on the gas companies to put in place an acceptable fixed markup.

Time Will Tell
I further thought about his while BBQ'ing tonight.

What if the Chamber of Commerce acted as the negotiating agent for the community.

They could negotiate so that anything above the Canadian average mark up from the refinery is returned to the members.

This markup discount could be tracked on a user card & POS machine that tracks the liters and the above markup discount for each fill up over the year. The credit would go individual accounts that would be applied against your city property taxes or returned to you in a city check annually.

The city could charge the first cent of every liter of above average markup to cover administration costs for the fund, with all surpluses going towards the municiple public transportation.

Currently Ben says the retail level is 11.8 cents and the Canadian average is 4 cents. Lets go with these numbers. I've worked in the gas station business and know that the average station does 10,000 liters or more on a bad day with 23 or so gas stations in PG.

Lets say close enough to a Billion liters of gas sold in PG each year at a markup difference of 7.8 cents a liter for a total of $78 milion a year sucked out of the local economy in extra markup above the Canadian average.

Lets say on the individual level you buy 100 liters of gas a week for your truck and you have a 7.8 cent markup premium your paying. Take of the peny for G&A and you have 6.8 times 100 equals $6.80 a week credited to your account for a total of $353.6 a year in credit. More if your a business or travel greater distences.

The catch would be that you have to have a PG regional district address to participate so all out of towners pay the advertised rate. Only the locals would know what gas companies are participating and would overwhelmingly use those stations to get the discount. Participating stations along with the Husky Oil refinery could then be considered for property tax credits as part of their participation.

Its a win-win for everyone IMO.
Should'a been 'this while BBQ'ing'...
"on average 100 litres per week for your truck" ... holy chit!!!

move downtown and quit driving a hunk of metal around .....

we buy on average 30 litres per week for a comfy sedan ... no wonder you guys are always complaining about gas prices ... you are the prime cause for their rising!!!!! Shake hands with the Bush south of the border...!!

;-)