Gas prices in Ontario have been climbing for the last week, not because the world price of oil has risen but because of a strike at CN Rail and fires at Ontario’s Nanticoke refinery owned by Imperial Oil which are causing gas shortages at the pumps. Initially the shortages started at Esso stations and some Candian Tire outlets which they supply.

At this point those not able to fuel up at their local Esso have gone to other stations like Petro Canada and Shell which are now starting to experience shortages. According to reports on Canada AM this morning of the roughly 4,000 outlets in Ontario, 130 are out of gas and 80 are rationing gas to no more than 75 litres at a time. So while it sounds like cars will soon be dropping like flies.. don’t hold your breath.

Normally, like anything is ‘normal’, if a situation like this happened rail cars of fuel would be brought in to make up the shortfall in the province while repairs were being made at the stricken refinery. CN Rail, the primary mover of freight in the country has been on strike for the last two weeks. Faith Hope of the Canadian Petroleum Institute said this morning on Canada AM that the last two weeks have been a confluence of unusual events. Like isn’t life a confluence of unusual events.

The oil companies are apparently focusing mostly on keeping a flow of supply going to smaller communities which are more dependent on fewer outlets for gas. I’ve not yet seen anything in the local media about a local impact out here in the Cobourg area but I’ll likely see one way or the other when I head in there to meet up with a friend for a walk this morning.

Plans to bring gas in from south of the border has run into a glitch, apparently the US allows more sulpher in their gas than we do here in Canada. pearlies of wisdom has an interesting article she’s found about fuel supply and refining capacity in Ontario.

You know, I can appreciate that Esso is going to be experiencing some loses due to the fire. At a time when oil companies are reporting record profits, I tend to think that they can cover the cost of that fire and clean up without it being on the backs of the consumers by gas prices rising. Yes, there are some outlets will and likely have arbitrarily raised pump prices without direction from the companies. Their suppliers can apply pressure to deal with that sort of gouging, but they wont.