NEWS PHOTO GILLIAN SLADE Gas prices in Medicine Hat remain at $117.8 per litre while Gas Buddy says supplies are being replenished for $1 per litre.
gslade@medicinehatnews.com@MHNGillianSlade
A local resident wants to know how much profit gas station owners need to extract from vehicle owners before reducing the price at gas pumps.
“How much profit do owners require off the backs of the public,” asks Richard Iftiniuk. “They are buying fuel from suppliers at lower prices now and still profiting on huge mark-up prices at the pumps.”
Gas Buddy revealed last week that Hat gas station owners are replacing their gas supply for no more than a $1 per litre, selling for $117.8 a litre and enjoying the profit.
A story in the News on Friday revealed Hatters were paying $117.8 while Calgarians were filling up for $91.9 a litre. Five days later Hatters were still paying $117.8 while a number of Calgary gas stations were selling for 92.9 cents a litre.
“Local retailers want us to shop locally so they can fleece us. I don’t think so. I will gas up and shop any place but Medicine Hat and Redcliff until this practice stops,” said Gil Bourassa, Redcliff resident.
Drew Barnes, MLA for Cypress Medicine Hat, says he is most concerned about the current 25-cent difference between gas in Medicine Hat and many parts of the province. He is worried about the impact on families and the competitiveness of area businesses.
“If this persists I believe all levels of government have to ensure Medicine Hatters are served with adequate competition,” said Barnes.
Iftiniuk says if groceries, water and medical supplies were to skyrocket for profit, government officials would not tolerate it based on unfair profiteering.
“Today … Alberta average pricing is 104.8 and we are 13.9 cents higher than average. That’s gouging,” said Iftiniuk.
Gas Buddy’s senior petroleum analyst, Dan McTeague, explained what gas station owners locally are paying for their supply.
The Petro Canada or Shell daily rack/wholesale price in Calgary is about 71 cents a litre, said McTeague. Add 10 cents a litre for federal tax, another 13 cents for provincial tax and that brings the price up to 94 cents. You then add the GST and you are looking at no more than 98 or 99 cents a litre.
“Including costs of transportation, $1 a litre is more than generous,” said McTeague.
Service Alberta told the News it is something the Competition Bureau of Canada looks into. Its website states that it does not have authority to regulate gas prices.
“The Competition Bureau takes action to investigate when it finds evidence of price-fixing or other anticompetitive conduct in the retail gasoline sector,” states the website.
Competing gas stations often charge similar or the same prices and that is not illegal unless “competing gas stations reach an agreement to do so,” the website states.
