FREDERICTON, New Brunswick ? Costco Wholesale Canada is undercutting other gasoline retailers by around six cents per liter ? an unwelcome discount that has Canadian gasoline station operators crying unfair competition, the Daily Gleaner reports. The retailers want the New Brunswick Energy and Utilities Board to set a minimum price standard to even things out.
?I think they should look at making some changes to the regulations,? said Kevin McCann, general manager for Wilson?s Fuels. ?It would certainly protect the small, rural retailers. They can't compete with the Costco retailers.?
The big-box discounter has a different gasoline model, but it doesn?t lose money on gas sales, said Ron Damiani, spokesman for Costco Wholesale Canada. The 26 Canadian Costco gas stations do not accept credit cards because of the transaction fees.
?We don?t because it costs us money,? said Damiani, who said the fees boost prices by about 3 cents per liter. ?And if it costs us money, it costs you money.?
Area gasoline stations are upset by Costco?s gas pumps because of the drop in traffic to their locations. ?My thoughts are the same as any other retailer who competes against Costco,? said McCann. ?They're a volume purchaser, and they discount deeply. We're no different than the local grocery store, the local electronics store, the local furniture store. We're all experiencing the same thing.?
The Atlantic Convenience Stores Association has asked the New Brunswick Energy and Utilities Board to change the fuel price system, such as setting a minimum price similar to Nova Scotia?s. Currently, the board dictates profit margins for each New Brunswick retailer, with profit margins at a 5 cents per liter of self-serve and 7.5 cents per liter of full-service gasoline.
?We feel that the system is broken and needs to be fixed,? said Mike Hammoud, president of the Atlantic Convenience Stores Association. The association has a meeting scheduled for later this month to talk about system changes. ?Hopefully we'll be able to convince them it needs to be fixed.'?
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