Letnick: Fuelling competition at the gas pumps

Kamloops has more competition in the form of gas stations aligned with big box retail stores.

If you aren’t concerned about gas prices in Kelowna, you need not read any more.

As former U.S. president Bill Clinton famously said, “I feel your pain.”

Abbotsford is next to the U.S. border, and if prices there were as high as ours, customers would head across the line to fill up, so that is not a good comparison.

The best comparison is Kamloops,where fuel prices are consistently five cents per litre lower than they are in Kelowna.

Even if you factor in one cent per litre higher in transportation costs to get the fuel to Kelowna, it still doesn’t explain the regular difference in pump prices.

We can do many things as individuals to reduce the pain of gas prices.

Everyone is different and has different transportation needs, but I, for one, ride my bike whenever possible, which has an added benefit of helping me stay healthy.

I also sold my sedan and purchased a Smart Car six years ago to further reduce my gas consumption.

Four hours to Vancouver for $22 isn’t a bad deal. In the future, I will be looking at the option of purchasing an electric car.

I was recently in Blaine, Wash., in my capacity as the parliamentary secretary responsible for intergovernmental affairs, to officiate at the start of the BC2BC electric vehicle rally.

Electric vehicles of all types gathered together for the nine day, 1,500 mile trek from the B.C. border to Baja, Cal., powered by electricity and recharged by a series of rapid chargers all the way down the coast.

For many this can be our future: A future of quick-charging stations, and less reliance on fossil fuels.

Unfortunately, this future is still a few years out.

For now, the best explanation I’ve heard as to why Kamloops may take a back seat to us in hockey, but is in the driver’s seat when it comes to fuel prices, is because they have more competition in the form of gas stations aligned with big box retail stores.

Here in Kelowna we have limited competition, with Canadian Tire offering Canadian Tire money, and Superstore offering up to seven cents off per litre with a President’s Choice Mastercard or debit card.

Gas prices are a concern for many of us in Kelowna, and some have asked me to get involved and get our government to regulate prices.

Gasoline prices are regulated in Prince Edward Island, Newfoundland and Labrador, Quebec, Nova Scotia and New Brunswick.

However, the Conference Board of Canada has determined that consumers in these regulated markets do not face lower gasoline prices than consumers in non-regulated markets.

The federal government, through the Competition Bureau, is responsible for ensuring consumers have access to competitive prices and investigating anti-competitive activities, such as price fixing.

Under the Competition Act, price fixing and other anti-competitive activities are illegal in Canada.

To report concerns regarding the gasoline industry call their toll free number at 1-800-348-5358.

Meantime, I’ve been working quietly behind the scenes to attract more competition in our local market.

There have been some challenges—at Costco, parking and space limitations have prevented a gas bar from being introduced, although they continue to explore their options.

Where I believe progress can be achieved is with Otter Co-op.

Based on 2011 data, a member patronage allocation of five percent on Otter Co-op Gas Bar fuel purchases in the Lower Mainland resulted in a return of 6.15 cents per litre.

Finally, there is hope for consumers who are looking for a better deal at the pump, especially on long weekends!

Otter Co-op is now searching for the right location in Kelowna and I hope there will be some relief at the pump very soon.

Once an appropriate site is secured, the next step will be to gauge public support.

I will continue to help Otter Co-Op where I can, and report back to you as developments arise.

Kelowna Capital News