Profits are being pinched because of the regulated Atlantic fuel market.
Unlike gas retailers in most of Canada, those in all four Atlantic provinces are subject to regulation that sets the maximum prices they can charge customers for petrol.
The photo was taken by Brandon Bell.
Gas retailers in Atlantic Canada want the federal government to cap credit card fees on fuel purchases.
The increase in fees businesses have to pay on the higher price of fuel is eating into their gross profits according to the Convenience Industry Council of Canada.
Unlike gas retailers in most of Canada, those in all four Atlantic provinces are subject to regulation that sets the maximum prices they can charge customers for petrol.
Anne Kothawala said in an interview that it was a real crisis situation in Atlantic Canada.
Gas retailers in Atlantic Canada don't have the ability to pass on costs when prices go up because their margins are regulated.
The CEO of the Canadian Energy Marketers Association said it was not an advantage to be in that situation.
Stewart said in an interview that it is very difficult to operate a business when everything is compounding at the same time.
Everything's compounding at once and making it a very difficult environment
Jennifer Stewart
The Canada Energy Regulator says that Atlantic provinces account for 7.5 percent of Canadian gasoline consumption.
The current average price in Nova Scotia is more than double what it was a year ago.
Credit card and tap transactions are now the norm for gas purchases as a result of the COVID-19 Pandemic. 55 percent of customers use their credit card for gas.
The Convenience Industry Council of Canada, which represents convenience retail owners, operators and suppliers, wrote that reducing these fees would allow stores to keep prices low for consumers.
The owner of five gas stations in Prince Edward Island said having a regulated market is a good thing.
The problem is that we are in a fixed market. Ramona Roberts is the owner of Big Dog Convenience and has been in the business for more than 20 years.
Atlantic retailers are paid on a flat rate while credit card charges are based on percentage, according to Roberts.
Retailers suffered because of high gas prices. She said that the lower our income goes, the higher the price of gas is. Fuel providers will not be able to replenish their supply if costs continue to increase and compensation decreases.
Dpaglinawan@postmedia.com and denise.pglnwn are email addresses.
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