Written by MARK NIELSEN
Citizen staff
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Wednesday, 03 December 2008 |
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After both reached a peak in Prince George of roughly $1.45 a litre in early July, the price of regular gas stood at 83.9 cents a litre Wednesday, while the price of diesel stood at $1.06.6.
Yes, the cost of diesel has been dropping, but the grass really is greener on the gas side of the fence.
Cathy Hay of M.J. Ervin and Associates, a Calgary-based consultant that keeps track of pump prices across Canada on a weekly basis, said a growing European preference for diesel over gasoline accounts for much of the difference.
Not only does diesel deliver better fuel economy, but the the price of gas now stands at about $1.70 Cdn in the United Kingdom thanks to hefty taxes meant to penalize drivers. Similar instances elsewhere in Europe have prompted drivers to turn to diesel-powered vehicles, she said, increasing demand for the fuel.
Additionally, she said the demand for distillate products -- furnace oil and diesel -- picks up as Canada heads into winter, while the demand for gas peaks in the summer during the travel season.
Diesel's popularity has rested in its consistently lower price relative to gas. But the tide in Prince George appeared to have turned late last year. From October to December, diesel jumped to $1.15.4 from 99.8 cents while gas rose to $1.06.5 from $1.05.1.
Since then, diesel in Prince George has been more pricey than gas for 18 of 49 weeks this year, including the past seven weeks.
Canadians have long maintained an aversion to diesel not felt in Europe, Hay said.
"We think of it as being dirty and smelly and all those negative connotations that people associate with diesel, but certainly in other parts of the world, they've somehow overcome that aversion and it may well be because gasoline is so heavily taxed," she said.
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Last Updated ( Wednesday, 03 December 2008 )
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