Why are gas prices higher in Sudbury, compared to the rest of Ontario?

A petroleum expert says there isn't a whole lot a municipality can do about the high price of gas.

Last August, Sudbury city council asked city staff to look into why gas prices in Sudbury are higher than many other parts of Ontario, and what they could do about the problem.

The report is due to be presented at Tuesday's city council meeting.

Michael Ervin is the senior vice president of the Kent Group, consultants that specialize in petroleum research. Some of theirresearch will form part of the presentation to councillors.

He says the price of gas factors in the cost of crude oil, taxes and the markup at both the refinery and the retailer respectively.

The markup at the retailer also includes transportation costs, if the gasoline must travel far from the refinery.

"One has to consider that retail gas stations in northern Ontario are farther to reach than those in southern Ontario, when you look at the distance from the refinery or the distribution terminal to retail outlets in northern Ontario," he said

Ervin says retailers in a particular community also have to factor in competition.

"Some markets would have for instance big box players such as Costco, that tend to drive prices down and make things difficult for other competitors to keep their prices up," he said

"Other markets just have less sales and need more markup in order to actually remain in the community."

Factors of markup can't be changed

Ervin says there isn't muchmunicipalities can do to change the price at gas pumps.

"It's very difficult to really move the bar." Ervin said in reference to trying to make changes given the various reasons for higher prices at the pumps.

"The factors of markup and taxes and whatnot really can't be changed by the consumer," Ervin said.

It's very difficultto really move the bar.- Michael Ervin, petroleum researcher

Lobbying for regulation by the provincial government is an option, as it would raise the profile of the problem. However, Ervin says the proposition comes with its own challenges.

Several provincial governments in eastern Canada have made the move to regulate pump prices, in that they've established a maximum amount that gas could be sold at retailers.

Ervin says in all of his research it's found that regulations don't help.

"Governments that regulate gasoline have to really tread a fine line between trying to help the consumer on one hand and possibly putting gas stations out of business on the other hand."

For consumers, Ervin has some suggestions to keep gas costs lower, like shopping around for the best price, using a fuel efficient vehicle and avoiding unnecessary trips.

"The best thing consumers can do is be informed as to why gasoline prices are what they are."