Is cooperative gas the answer to pressure at the pumps?
As gas prices in Alberta have crept up — and stayed up — many Edmontonians are looking for ways to save at the pumps.
For some, the key is in cooperation.
Don Smith, vice president of UFA Petroleum, said new members and users have skyrocketed. It’s not surprising given the picture at the pumps.
On Wednesday, GasBuddy showed eight of the top 10 lowest gas prices in the province at UFA locations. In Edmonton on the same day, the site showed the two city UFA locations at less than $1.46/L, while the CAA listed the average price in the city at 1.67/L.
“Retail has its own pricing dynamics, and we kind of really don’t pay attention,” Smith said. “We do our pricing our way.”
UFA takes a wholesale-like approach to gas, leading to lower prices for customers. And those who buy in bulk can see even more savings, Smith said. Because it is a centralized collective, the 120,000 members are able to access all UFA locations and card locks.
Card lock stations are 24-hour automated fueling stations that use a card to access the pump. UFA has four in the greater Edmonton area, and all are open to anyone with a card. New members and users should be aware that listed UFA gas prices don't include the 5 per cent GST.
He said there are benefits to membership, like discounts and potential dividends, but cards can be ordered through the website by anyone for no charge. Smith said UFA has seen more card requests and membership applications in the first half of 2022 than in the last three years combined.
“This level is surprising. It’s pleasing. It’s nice,” Smith said. He adds that the last few years have seen great changes in how people are buying things, and saving on gas makes a lot of sense.
Because they are a cooperative, members also receive dividends at the end of the year and have a say in how UFA is run, but Smith said people shouldn’t expect a check if they’re just going for gas. There are some ways to earn dividends on purchases, but regular fuel isn’t one.
Dan McTeague, president of Canadians for Affordable Energy, said card locks aren’t the solution to high gas prices because they don’t respond to the real problem — higher retail margins for retail gas providers.
“The reason you are able to maintain prices with such a steep, unprecedented retail margin, suggests to me that there is a loss of competition at that level, and that’s a bigger question,” McTeague said. He points out that, including taxes, gasoline currently costs $1.32/L to buy wholesale. A normal margin would be 15 cents, he adds, meaning prices around 1.60 don’t make sense.
“That market reality in Edmonton would be $1.51 or $1.52 per litre,” McTeague said. “Gas stations are taking advantage of the public to the tune today of at least 20 cents a litre, and they ought to curb their enthusiasm, drop those prices.”
Smith said he isn’t surprised that the UFA membership and customer base is growing as people respond to inflation pressures and change the way they buy. Predominantly a rural collective, Smith welcomes the surge of members and users in the city.
“It is important for people to know that we, UFA, does exist,” said Smith. “UFA is Albertans here to support Albertans. And I think it’s important to know that there is a cooperative here that does that.”
CTVNews.ca Top Stories
BREAKING Foreign meddling 'did not affect' overall federal election results: inquiry report
Foreign interference by China did not affect the overall results of the 2019 and 2021 general elections won by Justin Trudeau's Liberals, a commission of inquiry has found.
TD penalties expected to be higher on alleged drug money laundering link: analyst
A banking analyst says TD Bank Group could be hit with more severe penalties than previously expected after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits.
Magnitude 4.8 earthquake recorded west of Vancouver Island
A 4.8-magnitude earthquake was reported west of Vancouver Island Thursday evening.
How falling for a stranger she met on a beach led this woman to ditch the U.S. for the French Riviera
Niki Benjamin, from the U.S., had travelled to a paradise island to do some soul searching, and her life ended up going in a very different direction when her dog ran up to a stranger.
Biscuits with possible plastic pieces, metal found in ground pork: Here are the recalls for this week
Here are the latest recalls Canadians should watch out for, according to Health Canada and the Canadian Food Inspection Agency.
Britney Spears 'home and safe' after paramedics responded to an incident at the Chateau Marmont, source tells CNN
A source close to singer Britney Spears tells CNN that the pop star is 'home and safe' after she had a 'major fight' with her boyfriend on Wednesday night at the Chateau Marmont in West Hollywood.
Supreme Court orders new trial for B.C. francophone who was not given French option
The Supreme Court is ordering a new trial for a francophone man in British Columbia who says he was not informed of his right to have a trial in the official language of his choice.
Princess Anne to take part in B.C. ceremony bringing new ship into Pacific fleet
Western Canada's first Arctic and Offshore Patrol Vessel will officially be brought into the Pacific fleet today and Princess Anne, the sister of King Charles, is scheduled to take part in its commissioning ceremony.
BREAKING Winnipeg man accused of killing four women will be tried by jury
A Winnipeg man accused of killing four Indigenous women will have his case heard by a jury.