The perfect storm, which saw truckers and farmers scrambling over the last few months for diesel fuel, may be coming to an end.
Diesel drivers have seen their fuel supplies in Western Canada dwindling as an explosion this fall at the Federated Co-op Plant hit at the same time a refinery in the Edmonton area closed for maintenance. At the best of times there were limitations at the pump, at the worst of times the pumps ran dry.
“It has been terrible for two months said Bob Davidson of Top Waste. “I tell my staff, when you drive by UFA and you see people filling, get in there, even if you are three quarters full, top it off.”
Davidson said the shortage has not affected his business too much.
“But I feel bad for the guy rolling in from Ontario who only has one card and they don’t know what is going on here,” said Davidson.
Drumheller Co-op general manager Gord Van Kannel said the Drumheller Co-op has lifted its restrictions.
“At our cardlock and at our gas bar, those daily restrictions have been lifted,” said Van Kannel. “They are starting to build inventories.”
He said this event was a phenomenon, not only because of the difficulties at the refineries, but also because of when it happened.
“In the fall, normally our inventories are depleted, and because it was such an exceptional harvest they were depleted that much worse,” said Van Kannel. “Then the refineries went down and then the explosion, and it all started to pile up.”
He said during the shortage the Co-op had to purchase outside of their refinery to keep their stocks up.
While many suppliers were not able to keep enough fuel on hand during the shortage, daily restrictions allowed Co-op to not run out.
“It was not an ideal situation, but at least we could still get them product to keep them moving,” said Van Kannel.
The shortage certainly drove prices up as well. In a survey of fuel prices conducted by MJ Ervin & Associates, the cost of diesel in Calgary in August was hovering over $1.10 per litre. The November average was over $1.23 per litre.
Van Kannel said as inventory increases there should be some price relief.
