December 6, 2004
The ups and downs of gas prices
Energy at ±«Óãtv public lecture
by Catherine Young
Commentators have called it a 'crude awakening.'
Whether you own a subcompact or a large SUV, recent spikes in gas prices hit us all where it hurts - right in the wallet. With that in mind, the Energy at ±«Óãtv Lecture series continues on Dec. 7 with a timely topic.
Ian Wilson, President of Wilson Fuel Co. Limited, will speak on "Prices at the Pumps." As president of a family-owned Maritime business which successfully runs 75 gas stations under the Wilsons brand, Mr. Wilson knows his topic intimately.
"I plan to cover what goes into the makeup of pricing at the pumps for motorists," he says. "That will include components of the oil industry -- exploration and production, refining and marketing. Tax makes up a large component as well. I will talk about how each one of those parts goes into making the prices you see at the pump and what makes those prices go up and down. I'll also talk about market dynamics, who the players are and how it all translates to what the motorist pays. Hopefully, it will provide a better understanding of why prices are what they are at any given time."
Wilson says that the market changes constantly and that a successful retailer must respond to price fluctuations, "immediately." "Customers are insulated from small price changes but the instant that the change reaches a certain magnitude, the prices go up or down accordingly."
In the gasoline retail business, smaller players like Wilson vie with large multinational competitors like Shell and Exxon. And now retail merchants like Canadian Tire and Atlantic Superstore are joining the battle.
Despite this intense competition, Wilson Fuel Co. Ltd., with its head office in Truro, continues to thrive. Ian Wilson says that knowledge gives his company a competitive edge.
"We know the market very well," he says. "We are very efficient and low-cost because it is a very low profit margin business. We have to be flexible and quick to adapt and react. Those are things we focus on to compete with companies which are much larger and have more financial resources."
Mr. Wilson's talk is the second in a series of Energy at ±«Óãtv public lectures, sponsored by Emera. Program co-ordinator Andrew Henry says that increasing public knowledge is the reason for the lectures.
"The whole idea of this lecture series is to get energy issues out to the public and out to the broader community."
The series resumes in the New Year.