Photo by Vince Fedoroff
A WELCOME SIGN OF THE TIMES – Super A Foods’ gas prices were the first to dip to 99.9 cents Thursday. The Porter Creek outlet is seen above.
Gas prices keep sinking
The price for regular unleaded gasoline has dipped below $1 a litre for the first time in five years.
The price for regular unleaded gasoline has dipped below $1 a litre for the first time in five years.
Porter Creek Super A started Thursday’s downward move from 106.9 to 99.9 cents shortly after 1 p.m.
By last evening, most other gas stations had made the adjustment.
“I just thought it was time to lower the price of gas,” Super A store manager Mike Sheppard told the Star this morning. “We were the first to move.
“My cost went down, so my retail went down.”
Sheppard said local motorists know the two Super As always have the lowest price for gas, or at least none of the other stations are lower, and if they do go lower, Super A will follow.
And Sheppard intends to keep it that way.
He said he still maintains his profit margins, explaining the decline in the pump price is tied directly to the tumbling world price for a barrel of oil, which was $45 this morning.
Asked if consumers will see further price reductions, Sheppard said they may – maybe even later today.
The Super A price for a litre of premium this morning was 105.9, and 125.9 for a litre of diesel fuel.
A lower pump price will not affect tax revenue for the Yukon government.
The government takes 6.2 cents from every litre of gas sold and 7.2 cents from every litre of diesel fuel, regardless of the pump price.
There is no tax on home heating fuel.
The cost of heating fuel has also declined, though specific numbers were not available locally this morning.
Calgarians were paying an average of 78.6 cents a litre today for regular unleaded gasoline, according to gasbuddy.com
Edmontonians were paying 74.4 and Vancouverites were forking over 99.8 cents per litre on average.
In Dawson City, a litre of regular unleaded was selling for 126.9 this morning.
The last time regular unleaded sold for less than a $1 locally was back in January 2010, though it was there only briefly, according to records.
The last sustained price below $1 was in the first seven months of 2009, following the crash of 2008, when gas peaked that August at 145.0 cents.
The average price for a litre of regular throughout 2014 was 133.2 cents.
It peaked last summer at 143.4, when the price for a barrel of oil topped out at $107.42.
And as the barrel began its freefall, so did the pump price.
Records show the most notable decline came last month, when it went from 127.9 to 114.9 overnight, and then to 106.9 over the last couple of weeks.
Twenty years ago, Whitehorse residents were paying 66 cents for a litre of regular unleaded.
In 1981, the price was 44 cents.
See letter.
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Comments (10)
Up 0 Down 0
Yukoner on Jan 23, 2015 at 9:04 am
@Sandy - Your perspective was my initial knee-jerk reaction, too - it seems logical, but it's not the real reason. After some deeper research into global politics, it was pretty clear, and it makes more sense that this has little to do with fracking - Fracking jumps out as the intuitive reason, but the US would protect their fracking industry if they wanted to protect it during a Saudi price cutting tactic.
For a deeper look at what's going on, you can look up "The Real Reason For Cheap Oil and Gas - by WeAreChange or "Christopher Greene of AMTV". it's alternative media, but the message comes through. Both explain the reason for falling oil and gas prices, on youtube. Or you could research beyond the fracking rationale, to see what geo-global politics are currently at play.
Big strategies like this go far beyond Fracking start-ups. If fracking were the reason, the price drop would have been better timed. This is a huge strategic play to target and negatively affect specific economies. The world is in an economic war. It has been for some time. Economic wars are much more effective than wars like WWII.
If you really want to get the full picture, watch the video "Confessions of an Economic Hitman - John Perkins 2008" on Youtube - Watch the full interview. He came out after 911, as a whisltblower, to explain what he did as an economic hitman how he took down presidents and countries around the world, how he helped expand the reach of American military bases, and how this is all at play in the middle east, today.
It's just not as simple as tanking global oil prices to stop the US and Canada doing some fracking. These low prices will have more affect on the massive companies like BP, who drill for oil. This is outright economic war and frackers got caught in the crossfire. Bad timing and unexpected external variables hit every industry - you have to see it for what it is, by weighing the equation, and North Amercian fracking doesn't stand out as a target worth this kind of massive global economic impact. The juice is not worth the squeeze, if fracking is the target.
Up 0 Down 0
Why don'y Liberals and NDP joint forces on Jan 22, 2015 at 5:10 pm
There really is no difference between the liberal or the NDP just spenders. There is a new shift coming in from Ontario to the west coast and that conservatism is taking a strong hold and that means the following:
1 The power base in Canada is moving west and it mostly conservative.
2 Ontario will joint western Canada much more closely.
3 Governments will expect people to get out and work for your living and not rely on government programs.
Up 7 Down 0
Sandy on Jan 22, 2015 at 1:39 pm
@Yukoner: Actually it has a lot to do with fracking. The surge in oil shale production from North American hot spots like the Bakken field in North Dakota have OPEC worried. OPEC accounts for roughly 30-40% of the world's oil production, which gives them the hammer on pricing, for now. Because of fracking in North America and Russia, the Middle East is slowly losing its hammer. To defend their cartel they are driving prices down with hopes that oil shale production will suffer, and it will temporarily. The reality is, domestic oil shale production is not going away and will continue to compete with Middle East production. The result of this will be oil price volatility. For now, at the pumps it is working in our favour and (as you mention) is stressing the oil shale producers. Without this competition however, the price would likely be $120 a barrel. By thanking a fracker, even though their job may be in jeopardy, you acknowledge their role in challenging the OPEC cartel.
Up 24 Down 3
Found Yukon on Jan 21, 2015 at 8:34 pm
We are all thankful for falling gas prices. But Canada is the only oil exporting country in this world charging it's people world price. Oil producing cost in Canada today stands at $24.76 per barrel and sells for world price at the gate. A few weeks ago $100 plus. Even at falling world oil price still a tidy profit. Why does a government let this happen? Are we ruled by cartels?
Up 27 Down 20
Sally Wright on Jan 21, 2015 at 10:27 am
I think it is more appropriate to thank the Saudis for the collapse of the price of oil. They can produce their oil for under $10 a barrel and they will continue to do so until the Tar Sands are shut down, Mr. Putin and the other Oil-igarchs like our Mr. Harper, are removed from power, the frackers are put out of business, and the people who are concerned about Climate Change divest all their interests in Big Oil and invest in renewables. Then we will be on the road to a more sustainable world future.
We can all win here, we just have to change our policies to be more climate friendly, be more respectful of our fellow living beings and appease Mother Earth.
I sense a massive shift going on and it fills me with hope.
Up 18 Down 7
Yukoner on Jan 21, 2015 at 8:23 am
This has nothing to do with Fracking. Absolutely nothing. This is global strategy, politics and strategic economic pressure against countries. To think this has to do with fracking, means your view of the situation is lacking the big global economic picture. It affects frackers by over leveraging them with debt - collateral damage. That's about it.
Up 2 Down 92
Faroite on Jan 18, 2015 at 7:53 am
Nice to know that the communities are subsidizing your reduced prices. We still pay $1.21 in Faro. By the way, that is the price we pay to fill our vehicles when we go to Whitehorse to spend our monthly share of groceries, do our banking, eat at your restaurants and sustain YOUR economy.
Up 0 Down 11
Captain Obvious on Jan 17, 2015 at 10:45 pm
In addition to my comment on today's depressing story about declining housing prices and you guys supplying graphs to make number clearer:
This visit to my graphing paper made me happy.
Up 32 Down 21
Sandy on Jan 16, 2015 at 11:43 pm
I was waiting for an article to come out on this subject. If you appreciate the low prices at the pumps then "thank a fracker". I know I will.
Up 58 Down 1
Hosed in Beaver Creek on Jan 16, 2015 at 8:04 pm
Meanwhile Beaver Creek residents are still paying $1.519 per litre for regular.