Gas Supply Situation in Western Canada
Update #3: By Land, Air and Sea

Update #2: Why are some of your stations sitting empty for an extended period of time?

Petro-Canada's retail network is comprised of sites that we own and sites owned by independent dealers.  Because of our contractual relationship with independent dealers, their deliveries are being limited based on their normal sales volume. 

For sites owned by Petro-Canada, we are distributing our portion strategically to maximize availability to our customers.  That means we are concentrating on delivering gasoline to the sites that offer us the best chance to serves many customers as possible or are a community’s single fuel source.  That not only makes the gasoline we have more accessible to our customers, it maximizes trucking routes and helps speed up deliveries.  The flipside of that is we have had to suspend deliveries to some of our sites.  As a result, you will see a number of our sites out of gas for an extended period of time. 

Due to the rolling nature of some of the inventory, it will be difficult to provide an accurate number of stations that will be out of gasoline at any single point in time. 

So let me try and offer some perspective.   According to MJ Ervin, there are 1621 gas stations in Alberta and 1510 in British Columbia.  Of that, Petro-Canada has a branded network – sites we own and sites owned by independent dealers – of about 140 in Alberta and close to 200 in BC. That means that about 10% of the gas stations in these two provinces are branded Petro-Canada.   Due to current circumstances, we may see 80-90, largely company sites, out of gasoline for a period of time, or 2-3% of the total gas stations in the region. 

In summary, we are continuing to deliver product to our independent dealers and we are delivering the gasoline we have available to our company sites in a strategic manner.  This will cause some inconvenience, which we regret, but believe it is the best way to be fair while serving as many customers as possible.

Jon Hamilton

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

The comments to this entry are closed.