As fuel prices soar in N.L., central Labrador has the cheapest gas — for once

While volatility in international markets has sent fuel prices soaring in recent weeks, some Labrador regions have been left unaffected — for now.

Thanks to a seasonal price freeze, Central Labrador has the cheapest maximum price of gas in the province: just under $1.60 per litre for regular unleaded self-serve, the same as it was Nov. 25.

But the respite is temporary.

"We have enough inventory in Goose Bay that we are good till late May or June when the first tankers arrive. So I anticipate the freeze to be lifted then," said Peter Woodward, CEO of the Woodward group of companies, which transports and sells fuel in regions of Labrador with a price freeze.

Drivers in Western Labrador, which does not have a seasonal price freeze, are paying $1.99 for the same regular gas — nearly 40 cents higher than in Central Labrador. When Central Labrador's prices were frozen, the price in Western Labrador was only four cents per litre higher.

Price disparity a sore spot

When the price freeze took effect, the Coastal Labrador North zone had the highest gas prices in the province: $1.89 a litre for full-service unleaded gas — 29 cents more expensive than on the Avalon Peninsula, which usually has the province's cheapest gas.

But things have changed.

All of Newfoundland's zones have higher prices than any Labrador zone with a price freeze. Only the Western Labrador and Churchill Falls zones, which do not have a price freeze, have kept up with increases on the island.

This disparity in fuel prices for the two parts of the province is a sore spot for many.

"In November, the price freeze was taken off only to increase it to $1.89, and nowhere did we hear that it is a crisis," said Lela Evans, NDP MHA of Torngat Mountains.

"In rural Newfoundland, it's [now] $1.94, and everyone is calling it a crisis, but that's the price we deal with every day."

Essential to keeping cost of living down: mayor

Port Hope Simpson Mayor Margaret Burden says the price freeze is vital to controlling living costs for her community, on Labrador's south coast.

"For the first time ever, we have one of the cheapest prices in the province," said Burden.

Inflation hits her community hard, she said, because of the large numbers of retired residents living on a fixed income.

"At the end of the day, if your balance sheet doesn't work and you are out of money, you have to decide that 'we won't eat today' or 'we won't turn on our heat today.'"

Residents have presented a petition to the town council, demanding the price freeze remain in place till last year's oil stock runs out, even if the seasonal oil tanker comes in early.

The price at which Woodward procures the next bulk purchase of oil will set the tone for the rest of the summer.

At the end of the day, if your balance sheet doesn't work and you are out of money, you have to decide that 'we won't eat today' or 'we won't turn on our heat today.'- Margaret Burden

Evans said the freeze is helping now, but noted it can also hurt Labrador consumers, as it did when prices plummeted at the onset of the COVID-19 pandemic.

"In March 2020, the price of the fuel dropped and in the Avalon, they were paying 82 cents a litre. We were frozen at $1.53," said Evans.

She said she wrote the Public Utilities Board at the time to ask them to unfreeze the price but was told the freeze is intended to protect the retailer — not, Evans added, consumers.

For now, consumers in Central Labrador are enjoying the cheaper gas while they can.

"It's cheaper here and everywhere else is more expensive. I guess we will take it, eh?" said Curtis Andrews, refuelling his truck in Happy Valley Goose-Bay.

Read more from CBC Newfoundland and Labrador