NEWS PHOTO GILLIAN SLADE A sign you're unlikely to see in Medicine Hat any time soon. Gas in Calgary was almost 20 cents cheaper than in Medicine Hat over the Family Day weekend.
gslade@medicinehatnews.com@MHNGillianSlade
Fill your gas tank with 45 litres of gas in Calgary last Saturday and you would have paid $8 less than if you’d purchased it in Medicine Hat.
A Calgary Esso gas bar was selling for 90.9 cents a litre while an Esso gas bar in Medicine Hat was charging 109.9 – a difference of 18 cents a litre.
On Tuesday the differential was greater where in Medicine Hat, unless you are a member of Costco, you would have paid 108.6 cents a litre. In Edmonton it was 78.9 cents a litre, Calgary 89.9, Lethbridge 105.9, Strathmore 96.9 and Bassano 107.9.
That means 45 litres of gas in Edmonton would have cost you $13.37 less than if you’d bought it in Medicine Hat.
Patrick DeHaan, head of petroleum analysis for Gas Buddy, says there is a price war taking place in Calgary, and Medicine Hat does not appear to have the same level of competition.
In June last year, when there had been a similar differential, the former senior petroleum analyst for Gas Buddy, Dan McTeague, said it costs only a cent or two a litre for transportation of fuel to Medicine Hat.
Drew Barnes, MLA for Cypress-Medicine Hat, expressed frustration at the lack of competition locally.
“It’s another issue that we’re having down here in Medicine Hat,” said Barnes. “Competition is the answer to bringing the price down.”
He has discussed the situation with his caucus colleagues and expressed concerns to gas companies via social media.
Competition does not seem to be working but Barnes says government regulating the price is definitely not the answer.
“Whenever the government steps in it destroys business confidence and it creates an unlevel playing field,” said Barnes.
Medicine Hat consumers can send a message to gas stations and reward those who provide a competitive edge, said Barnes.
“Whether it’s the most price competitive or the one that gives the best service, let’s reward them with our business,” said Barnes.
