Uptick in fuel prices in Winnipeg not related to pipeline maintenance, minister says

Manitoba's minister responsible for economic development and natural resources says a recent uptick in gas prices isn't related to the ongoing maintenance of apipeline that Imperial Oil announcedover the weekendwastaken out of service.

"We've seen price rises over the last few days right across the country, and the gas price rises here in Winnipeg have been, quite frankly, matching a lot of the gas prices right across the country," Jamie Moses said Wednesday following question period at the Manitoba Legislature.

"So we don't think that that change has relation to do with this pipeline maintenance."

The line was shut down after an inspection raised concerns about a section of the pipe just south of St. Adolphe, Man., according to the company, andwill be out of service for about three months.

Moses said the NDP government is closely monitoring the situation.

"We have also had inspectors on site where the pipeline is, near St.Adolphe who have been working there over the last few days, and we're very optimistic about the timeline that Imperial Oil has put in place," he said.

The province continues"to work and lean on suppliers to ensure that there is an adequate supply of gas coming into Winnipeg and surrounding areas," he said.

Moses's comments on the price hikewereechoed Wednesday by Dan McTeague, president of Canadians for Affordable Energy and founder of the price-tracking website Gas Wizard.

That site said the average price for a litre of regular gas in Winnipeg was 139.9 cents on Wednesday, up from 133.9 as recently as Friday.

The increase was related to "abysmally low retail margins" gas barshave, said McTeague, adding it was something he anticipated.

"Normally, gas stations need [a margin of] eight to 10 cents a litre to operate in big cities," he said in a Wednesday interview with CBC'sInformation Radio. At 133.9 cents, the margin would only be about four cents per litre, he said, prompting a hike.

McTeague also said he doesn't think there will be significant disruption due to the pipeline shutdown, but it will be inconvenient.

"Gas stations from time to time may run out of fuel, but [will] be replenished," he said.

They'll also be on what's called "allocation," he said,"which basically means rather than getting 30 [or]40,000 litres in one dropoff, they're going to get 10,000."

Managing that means "they're going to have to probablyin some instancessay to customers, 'Look, you can only get 75 litres,'" he said.

But "there's no need for hoarding and certainly no need for panic."

However, interim Progressive Conservative Party Leader Wayne Ewasko said he doesn't think the NDP government has providedmanyanswers for Manitobans.

"Hopefully there's not the panic that's out there, but from what I've heard from my constituents and other Manitobans is there's already been lineups and people with jerry cans lining up for fuel," he said.

The Opposition party has also encouraged Premier Wab Kinew to extend hisgovernment'stemporary suspension of the provincial gas tax, which is set to expire in a few months.

Kinew said Tuesdayhe would consider it.

Graham Carlyle, vice-president of corporate services of Domo across Western Canada, said so far, Winnipeg locations are getting byrelying on inventory they hadbefore the shutdown.

However, that will probably run out in a week or so, he said.

In the meantime, his company is working to bring fuelin, he said, withcontracted haulers going as far as Gretna, near the U.S. border, or evenSaskatoon to truck it in.

Some Domo stations have run close torunning out of fuel, but have avoided any major problems, he said.

"We've managed to be OK so far, but touch wood on that."

Meanwhile, Moses said the government will continue monitoring gas prices.

"We have to be very honest, that Manitobans are going to have to live with this situation for a few months," he said.