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Posted: March 22, 2020

Gas pricing culprit may be closer than we thought

Letter to the Editor

I have been one of those conspiracy theorists that always felt the oil companies were gouging at the pump, and they may be, but a recent trip to Calgary gives me pause to wonder if it’s the suppliers or the retailers.

In October of 2019 local gas prices were 124.9 and the switch to winter fuel was under way, which should give a price reduction.  Something happened in the supply chain (can’t remember what) and the price stayed the same.  In fact, stayed at exactly that price until recently where we got two reductions in close order down to the current 113.9.  I thought great, about time.

Then, on March 14 I went to Calgary.  On my travels I saw a gas spike to 120.9 in Fernie and then, as I entered Alberta prices dropped.  Normal, right?  Problem was when I got to Calgary the average price was 77.9.  Now gasoline wholesale price just for the product is the same for every station. What differs is transportation cost and tax regimes.

I don’t have any delusion that we could get 77.9 gas here in Cranbrook, but I don’t see any justification for a 36 cent per litre price difference between Calgary and here.  In fact, to make matters worse, as I came home I went through Invermere and Fairmont Hot Springs, notoriously one of the most expensive areas for fuel. They were at 106.9.

I’ve noticed for a few years that we here in Cranbrook/Kimberley are getting the short straw, at least in my opinion.  It may be time that we have conversations with our local gas station owners/managers as to what is going on (NOT the poor attendant at the counter, they have absolutely no control).  Appears on the surface that the pricing culprit MAY be closer to home than we thought.

Glenn Stiller,

Cranbrook


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