Are Esso Shortages Really Driving Up Gas Prices?
Posted February 21, 2007 12:00 pm.
This article is more than 5 years old.
Filling up your car with gas is the kind of thing you usually only think about when you’re running on empty.
But this week, the complexion of that very ordinary activity has changed, thanks to the ongoing shortage at Esso stations across the province.
By now you know the story: a fire at Imperial Oil’s Nanticoke plant, trucks tied up because of a CN rail strike and the long February cold snap have all led to a winter of discontent for drivers.
Prices soared again on Wednesday, going from an already expensive 91.5 cents the day before to as much as 96 cents a litre in the morning. And it could get worse.
Some 75 Esso stations across the province – including around 20 here in the GTA – have been at least temporarily shut down by the crisis. They’re the ones with the “$0.00” signs on their marquees.
But they’re not the only ones suffering.
Independents – including at least 10 Canadian Tire stations across the city – are out of business until things get back to normal.
And while Imperial Oil is assuring drivers that will be sometime next week, other sources are telling CityNews some stations may be shut down until March 15th.
Independents are among the worst hit, desperately hoping they can survive the drought no matter how long it lasts.
Steven Shapiro, who runs the Gas 101 station at Richmond and Sherbourne, has been forced to hike his rates and his customers aren’t happy.
“We’ve always been very competitive downtown and as it is it’s hard to stay afloat,” he laments.
His price as of Wednesday afternoon: 95.3 cents for regular.
“We’re fighting tooth and nail to get fuel in the ground and to keep our stations open,” he explains. “God forbid we don’t have fuel in the ground, we’ll be closing our doors.”
He claims blaming the individual station or griping at the clerk won’t make gas magically appear. “It’s out of our control,” he shrugs.
Shapiro fears when the spigot is finally turned back on, the small guy will be the last on the list to get the fuel. But Imperial Oil denies it.
Still, one thing is clear.
“None of this is good news for the consumer out there,” warns Eric Lascelles of T.D. Securities.
“But when there is a will there is a way and market forces can help solve some of these problems. That’s why gas prices are higher. It’s encouraging gas to be brought in from some unorthodox locations.”
An Esso spokesman has assured drivers there’s enough to go around at their competitors, provided people don’t start panic buying.
Some are heeding his advice.
“I’m not panicking,” nods David Tom. “Give it a week or two, then we’ll see.”
Still, Shapiro is convinced you won’t be finding any bargains out there for a while.
“I think prices are going to stay up because people need to keep fuel in the ground and I think people need to be more cautious when driving their cars.”
Imperial is adamant their problem isn’t causing the sudden price hikes and Ontario’s Energy Minister has pledged to keep an eye on the rates.
Is the company right about the prices? CityNews.ca decided to investigate by looking at the current prices drivers are paying in other parts of the country.
A weekly survey by industry analyst M.J. Ervin and Associates, taken on Tuesday, shows that Ontario is mostly on par or a just little above most other big cities.
That’s small comfort for those who are looking at ever higher prices and even the hint of dwindling reserves.
Here’s the list by province, based on a litre of regular.
B.C.
Vancouver: $100.7
Victoria: 99.9
Alberta
Calgary: 85.2
Edmonton: 85.4
Saskatchewan
Regina: 93.5
Saskatoon: 93.5
Manitoba
Brandon: 88.0
Winnipeg: 88.0
Ontario:
Hamilton: 91.7
Kingston: 86.8
London: 94.3
North Bay: 89.9
Ottawa: 91.3
Peterborough: 85.7
St. Catharines: 89.4
Sault Ste. Marie: 91.7
Sudbury: 87.5
Toronto: 91.5 (now higher in some areas)
Thunder Bay: 96.9
Windsor: 92.3
Quebec
Montreal: 93.3
Quebec City: 95.0
Sherbrooke: 94.4
New Brunswick
Fredericton: 89.5
Moncton: 89.3
Saint John: 89.3
Nova Scotia
Halifax: 94.8
Sydney: 98.9
Prince Edward Island
Charlottetown: 95.9
Newfoundland/Labrador
St. John’s: $100.4
Gander: $102.9
Corner Brook: 101.1
Northwest Territories:
Whitehorse: 97.6
Yellowknife: 98.8
Source: MJ Ervin & Associates
