Page 8 - January 28, 2019
P. 8
THE WEEKLY ANCHOR
THE WEEKLY ANCHOR
PAGE 8 MONDAY JANUARY 28, 2019 MONDAY NOVEMBER 6, 2017 PAGE 13
Why are gas prices so high in Edson?
by Cassie Kushniruk markets that are close to one another, and if one throughput are going to require more margin to
has sites with much higher average throughput make enough revenue to pay their costs. The
Although there has been a recent drop in than the other, the sites with the higher average population of both people and sites in a market
gasoline prices across Canada, Edson is home to throughputs are much more likely to require affect average site sales, which have an impact
some of the highest gasoline prices in all of lower margins that offer lower retail prices,” on margin need.”
Alberta. Parent explained. “That's what I would say is the Lastly, we were curious as to who generally
Community members have expressed their primary issue in most of these cases.” sets gas prices in towns similar to Edson. Parent
concern with this issue in the form of letters and Since we had been previously referred to sites replied that in rural communities that are further
on social media, wondering why gas prices in that claimed population size impacted gas prices away from big cities, site operators or dealers
Edson are so high compared to nearby due to competition in the area, we asked Parent typically set the prices. “Very few sites in those
communities. “Gas prices have been ski-high in why prices in Edson were not lower due to the markets are controlled by what most people
Edson,” said country music singer and Carrot amount of competition between local stations. would consider major oil companies. So in those
Creek area resident Harry Rusk in a letter to The “Population alone isn't an issue,” Parent cases, they are usually non-controlled sites and
Weekly Anchor. “Can anything be done about replied.“You can have a high population, but non-controlled site prices are set by local
this situation please?” with a high number of sites each site is going to retailers who would also own the inventory at the
Some Edsonites have even gone out of their sell, on average, less fuel than a similar sized site.”
way to purchase fuel in Hinton or Niton. town with fewer sites. The sites that have a lower
As of January 21, gas prices in Edson averaged
around 109.4 cents per liter, according to
GasBuddy. In Niton, a community only 30
minutes away from Edson, gas prices sat at 99.9 PASSPORT PHOTOS & MORE
cents per liter. Edmonton is home to some very Professional Digital Passport System photos
low prices, with as high as a 23.5 cent difference ready in minutes while you wait...
between gas prices in Edson. Other communities,
such as Entwistle (102.9 cents per liter),
Whitecourt (100.8 average cents per liter), and
Mayerthorpe (94.2 average per liter) have
significantly lower gas prices, which beg the
question: Why is Edson suffering through some
of the highest gas prices in the entire province?
For weeks The Weekly Anchor has been
attempting to get in contact with a few major gas
companies, such as Petro Canada and Esso,
looking to have a conversation with someone
about this issue Edson is facing.
However, the vast majority of the people we
contacted referred us to sites with related DROP IN AND SEE!
DROP IN AND SEE!
information, many of which attributed high gas
prices to transportation costs, regional tax prices, 5040 3rd Avenue, Edson
5040 3rd Avenue, Edson
population, and competition.
780-723-5787
But we wanted more information as to why this 780-723-5787
was happening specifically in Edson.
The W
Recently, we were referred to Vice President, The Weekly Anchoreekly Anchor
Consulting Jason Parent of Kent Group Ltd.,
who was more than happy to answer our
questions.
As a company based in Ontario, Parent
clarified that although he could not speak
specifically of the market in Edson, he could
offer some generalities that have been seen to BILL MITCHELL
lead to high gas prices in similar communities NEW TRUCK SALES
across Canada. “A retail station's price depends NORTH
on a number of factors,” Parent began. “One is
how much it costs them to get the wholesale Western Star Trucks (North) Ltd.
product to that market. Sometimes the more 24210 114 Avenue
remote markets have higher distribution costs,
but that's typically a small amount. If you're Acheson, AB T7X 6B9
comparing two communities that are both further Website:
away from distribution terminals, that's likely not Visco's backhoe was moved into place marking the ultimate demise of the old Wildwood water tower www.wsnorth.com
what's causing the issue.” and old fire hall (right). At the Yellowhead County council meeting on November 27, 2018 council Media releases
“The other thing that can contribute to these voted in favour of demolishing Wildwood’s old fire hall, water tower and Evansburg’s water tower
differences are factors that determine how much (now taken down). photo Dana McArthur Toll Free 1-800-252-7500 Cell: 780-984-2224
margin a site needs,” Parent continued. “A retail Phone: 780-453,3452 Fax: 780-447-5317
site is looking to
generate enough EDSON DRY CLEANERS
revenue to pay their
Summers Drilling
costs and also make a 780-723-7503 Summers Drilling
little bit of profit. In 108 50 Street
Water Well Drilling
order to do that, they Water Well Drilling
sell gasoline, but gas
stations from one to the
other will sell different All F/R Coveralls A pr
A proud Alberta business, since 1917, oud Alberta business, since 1917,
volumes of gasoline. Summers Drilling specializes in water well
Summers Drilling specializes in water well
The more volume you drilling and water well repairs. epairs.
drilling and water well r
sell, the less margin you 10%
need per liter of fuel to off
make that revenue.”
Parent explained that
the throughput—the
average sales of sites in
the market—can also Until
have a large impact on
what margins look like. January 31, 2019
780-963-1282
4405 50 street
“You could have two 4405 50 street 780-963-1282
Stony Plain, AB www.summersdrilling.comwww.summersdrilling.com
Stony Plain, AB
THE WEEKLY ANCHOR
PAGE 8 MONDAY JANUARY 28, 2019 MONDAY NOVEMBER 6, 2017 PAGE 13
Why are gas prices so high in Edson?
by Cassie Kushniruk markets that are close to one another, and if one throughput are going to require more margin to
has sites with much higher average throughput make enough revenue to pay their costs. The
Although there has been a recent drop in than the other, the sites with the higher average population of both people and sites in a market
gasoline prices across Canada, Edson is home to throughputs are much more likely to require affect average site sales, which have an impact
some of the highest gasoline prices in all of lower margins that offer lower retail prices,” on margin need.”
Alberta. Parent explained. “That's what I would say is the Lastly, we were curious as to who generally
Community members have expressed their primary issue in most of these cases.” sets gas prices in towns similar to Edson. Parent
concern with this issue in the form of letters and Since we had been previously referred to sites replied that in rural communities that are further
on social media, wondering why gas prices in that claimed population size impacted gas prices away from big cities, site operators or dealers
Edson are so high compared to nearby due to competition in the area, we asked Parent typically set the prices. “Very few sites in those
communities. “Gas prices have been ski-high in why prices in Edson were not lower due to the markets are controlled by what most people
Edson,” said country music singer and Carrot amount of competition between local stations. would consider major oil companies. So in those
Creek area resident Harry Rusk in a letter to The “Population alone isn't an issue,” Parent cases, they are usually non-controlled sites and
Weekly Anchor. “Can anything be done about replied.“You can have a high population, but non-controlled site prices are set by local
this situation please?” with a high number of sites each site is going to retailers who would also own the inventory at the
Some Edsonites have even gone out of their sell, on average, less fuel than a similar sized site.”
way to purchase fuel in Hinton or Niton. town with fewer sites. The sites that have a lower
As of January 21, gas prices in Edson averaged
around 109.4 cents per liter, according to
GasBuddy. In Niton, a community only 30
minutes away from Edson, gas prices sat at 99.9 PASSPORT PHOTOS & MORE
cents per liter. Edmonton is home to some very Professional Digital Passport System photos
low prices, with as high as a 23.5 cent difference ready in minutes while you wait...
between gas prices in Edson. Other communities,
such as Entwistle (102.9 cents per liter),
Whitecourt (100.8 average cents per liter), and
Mayerthorpe (94.2 average per liter) have
significantly lower gas prices, which beg the
question: Why is Edson suffering through some
of the highest gas prices in the entire province?
For weeks The Weekly Anchor has been
attempting to get in contact with a few major gas
companies, such as Petro Canada and Esso,
looking to have a conversation with someone
about this issue Edson is facing.
However, the vast majority of the people we
contacted referred us to sites with related DROP IN AND SEE!
DROP IN AND SEE!
information, many of which attributed high gas
prices to transportation costs, regional tax prices, 5040 3rd Avenue, Edson
5040 3rd Avenue, Edson
population, and competition.
780-723-5787
But we wanted more information as to why this 780-723-5787
was happening specifically in Edson.
The W
Recently, we were referred to Vice President, The Weekly Anchoreekly Anchor
Consulting Jason Parent of Kent Group Ltd.,
who was more than happy to answer our
questions.
As a company based in Ontario, Parent
clarified that although he could not speak
specifically of the market in Edson, he could
offer some generalities that have been seen to BILL MITCHELL
lead to high gas prices in similar communities NEW TRUCK SALES
across Canada. “A retail station's price depends NORTH
on a number of factors,” Parent began. “One is
how much it costs them to get the wholesale Western Star Trucks (North) Ltd.
product to that market. Sometimes the more 24210 114 Avenue
remote markets have higher distribution costs,
but that's typically a small amount. If you're Acheson, AB T7X 6B9
comparing two communities that are both further Website:
away from distribution terminals, that's likely not Visco's backhoe was moved into place marking the ultimate demise of the old Wildwood water tower www.wsnorth.com
what's causing the issue.” and old fire hall (right). At the Yellowhead County council meeting on November 27, 2018 council Media releases
“The other thing that can contribute to these voted in favour of demolishing Wildwood’s old fire hall, water tower and Evansburg’s water tower
differences are factors that determine how much (now taken down). photo Dana McArthur Toll Free 1-800-252-7500 Cell: 780-984-2224
margin a site needs,” Parent continued. “A retail Phone: 780-453,3452 Fax: 780-447-5317
site is looking to
generate enough EDSON DRY CLEANERS
revenue to pay their
Summers Drilling
costs and also make a 780-723-7503 Summers Drilling
little bit of profit. In 108 50 Street
Water Well Drilling
order to do that, they Water Well Drilling
sell gasoline, but gas
stations from one to the
other will sell different All F/R Coveralls A pr
A proud Alberta business, since 1917, oud Alberta business, since 1917,
volumes of gasoline. Summers Drilling specializes in water well
Summers Drilling specializes in water well
The more volume you drilling and water well repairs. epairs.
drilling and water well r
sell, the less margin you 10%
need per liter of fuel to off
make that revenue.”
Parent explained that
the throughput—the
average sales of sites in
the market—can also Until
have a large impact on
what margins look like. January 31, 2019
780-963-1282
4405 50 street
“You could have two 4405 50 street 780-963-1282
Stony Plain, AB www.summersdrilling.comwww.summersdrilling.com
Stony Plain, AB
