Whitehorse Daily Star

Soaring gas prices: It's absolutely terrible'

The Yukon government is ready to meet with other territories and provinces to talk about how they can work with the federal government on a pricing policy for gasoline.

By Whitehorse Star on May 7, 2004

The Yukon government is ready to meet with other territories and provinces to talk about how they can work with the federal government on a pricing policy for gasoline.

'The Yukon's prepared to go,' Premier and Finance Minister Dennis Fentie said in an interview this morning.

Fentie was speaking in the wake of the cost of premium gasoline soaring over the $1-per-litre mark at some area gas stations this week.

The territorial government received a letter from the Saskatchewan government Thursday.

The letter asked it and other provincial and territorial ministers responsible for consumer affairs to be part of a meeting that will look at lobbying the federal government to work on gasoline pricing.

While the territorial government is willing to participate, Fentie noted other jurisdictions have to come to the table as well.

Fentie said the government will be looking at what other governments are doing before it responds to the letter.

'It's a matter of phone calls,' he said.

Gas prices across the country have continued to escalate in recent weeks across the country in some areas like Ottawa, by more than 10 cents per litre.

While taxes have a little to do with the pricing, Fentie said there are a number of factors that come into play with gas prices.

Each territory and province pays the seven-per-cent GST along with another tax according to each area. In the Yukon, the territorial tax sits at 6.2 cents per litre.

As Fentie noted, however, there are a number of other issues involved in the gas pricing, such as refining the oil.

At the pumps, motorists are continuing to buy gas for their vehicles, but it doesn't mean they're not complaining about the recent jump in prices.

In the past few weeks, the price of regular gasoline has been risen to 94.9 cents at most stores around Whitehorse.

'It's absolutely terrible,'' Shane Valente, who manages the Race Trac store in McIntyre, replied when asked what customers are saying about the price hike.

From April 14 to April 28, the average price of regular self-serve gas in Whitehorse rose five cents, from 89.8 cents to 94.8 cents per litre. It had stayed at 89.8 cents per litre for four weeks previous. Prior to that, it was at 87 cents a litre.

Bob Collins, an energy resources analyst with the territorial Department of Energy Mines and Resources, pointed out gas prices increase each summer.

'The summer driving season has begun,' he said in an interview this morning.

The territory hasn't been contending with some of the price hikes the rest of the country has had to deal with.

'We haven't seen an increase yet,' he said.

Collins said the territory's gas prices tend to be behind trends throughout the rest of the country.

As for whether the price could soon break the $1-mark for a regular litre of self-serve gas in Whitehorse, Collins replied, 'I won't be surprised.'

It wouldn't have to go up too much for it to reach the $1-mark around Whitehorse, he added.

The prices, he said, are determined by the market. Motorists should try to shop around for the best price to keep local retailers competitive, he advised.

Collins pointed to three reasons for the increases across the country.

'Crude prices are high,' he said, adding the price of crude oil in Canada has gone up to $327 per cubic metre.

He said that while the price of crude oil in the U.S. has hit a 13-year high at $39.58 per barrel, the highest price crude oil has gone to was in November 1998, at $365 per cubic metre.

Also, the crude mix has been made up of heavier mixed oils which require more work than has been done in the past.

There's also a change in the type of fuels that are used throughout the summer months, Collins explained.

At Race Trac, the number of people coming into the store paying for gas has dropped as the price of gas has risen.

Meanwhile, in Granger, Herbie's Grocery owner Dee Balsam said although she hasn't heard many comments on the prices, customers are switching what type of gas they buy.

'You're seeing people buy less premium,' she said.

Her customers who would previously purchase the more expensive premium blend, which now costs $1.029, are now buying the regular gas at 94.9 cents a litre.

As of April 28, the average price of a litre of self-serve premium gas was $1.005, with mid-grade gas costing 99.4 per litre and regular costing 94.8 cents per litre.

The average price for full-service gas was 95.5 cents for a litre of regular, $1.007 for a litre of mid-grade and $1.026 for a litre of premium.

Balsam noted it can sometimes be easier to view gas as costing a few bucks more per fill-up rather than looking at the increase per litre.

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