Fort McMurray-Lac La Biche MLA Brian Jean was at the Ponoka Stampede last weekend, hoping to rope in some votes and support for his bid to be the next Premier of Alberta.
It was as good a place as any to release another of his campaign platform items, but Jean knows that away from the rodeo grounds and midway roller coasters of the stampede weekend, Albertans are coping with their own wild ride when it comes to the rising costs of fuel at the pumps.
His latest promise to make life easier and more affordable for struggling Albertans is to remove provincial royalties on any barrels of Alberta oil refined for diesel and gasoline sales in the Alberta market. He figures the royalty break would translate to about 15 cents a litre less at the pump. Calling it an "owners' discount," Jean says the promise will be kept if he is elected as the province's next premier.
Jean said he would offer the royalty-break in addition to the current provincial government's fuel rebate program that is supposed to be saving consumers about 10 cents a litre at the pumps.
When asked where the shortfall from reductions would be made up, Jean said royalties would still be coming in from the 90 per cent of the oil that leaves the province. He also says his plan will examine every step along the oil-to-gas pump process in Alberta to find efficiencies.
'Ripped off at the pumps'
"It's gong to be about transparency and accountability, and we need that from all parts of the process, up to the retailers," he said, doubling-down on that comment a few days later, sending out a media release saying that "Albertans are getting ripped off at the pumps."
His comment went further to say that a "fair price" based on current wholesale rates of fuel and the current provincial rebate should be at $1.55 per litre. In Lac La Biche over the two weeks, the price for a litre of unleaded gasoline has ranged from a high of $1.89.9 to $1.81.9
"Based on today's (July 6) wholesale rate of $1.195 a litre and taxes of $0.2105 a litre a fair price for gasoline in the next few days should be around $1.55 a litre. If it isn't by the weekend, Albertans are getting ripped off," he said, adding that his latest campaign pledge would reduce that fair price by another 10 per cent at current wholesale prices. "Now imagine another 15 cents a litre coming off of that, if the oil used to make the gasoline was royalty free?"
Reducing the price at the pumps isn't just about helping motorists, he said. It's about helping to reduce increasing grocery, retail, and service prices due to increased transportation expense.
"Reducing fuel prices is the key to fighting inflation in Alberta," Jean said.
"If I am elected Premier, I will make sure we have the lowest fuel prices in Canada."
— Fort McMurray-Lac La Biche MLA Brian Jean
In his latest plan, every retail fuel station would have stickers outlining the cost percentages for each litre when it comes to refining, upgrading, production, delivery and retail profit.
Jean is clear that he is not taking direct shots at retailers or oil companies or distributors with his new campaign promise. He just wants to take the mystery out of the process.
"I'm not doing this for the oil companies or the fuel retailers, I'm doing this fo all Albertans ... We are concerned about the process all the way through, and we need the transparency, we need to pass on those savings," he told Lakeland This Week.
He is committed to working with oil producers and refiners to find the most effective system to realize cost reductions.
According to Jean, Alberta produces about four million barrels of oil and equivalents a day. More than 90 per cent of that total is exported out of the province, with the remainder is refined in Alberta into diesel and gasoline for provincial consumers. He says that feedstock oil and bitumen — the raw resource — make up about half of the cost of the final, pump-ready product. At current royalty rates, he said, about 15 cents per litre of fuel is the royalty cost of the feedstock fuel.
Those savings — and more — should come back to all Albertans, and not be absorbed into a hidden maze of profits and costs.
“Albertans own the oil, we can give them the benefit of that in a way that reduces costs and inflation, quickly and permanently,” the Fort McMurray-Lac La Biche MLA said.
"Blowing our budget"
Regionally, the steady rise in the price of fuel has had a big impact on municipal budgets. On Tuesday, Lac La Biche County councillors were told that fuel costs for municipal vehicles will likely double this year to more than a million dollars.
Financial officers with the municipality say that to the end of May, more than $580,000 had already been spent on fuel purchases across municipal departments — on a budget of $700,000 that was supposed to be for the entire year.
"We're almost encroaching on our budget for the full year," said the County's manager of Finace Zeeshan Hasan. "We are blowing our budget."
The variance is tracking to be in excess of 185 per cent of the budgeted amount, said the county's manager of finances, Zeeshan Hasan.
Like all residents, a financial backup plan has to be put into place to balance the costs. Hasan said councillors will have to determine if services are to be reduced, taxes and service fees are to be increased or more efficiences can be found in all municipal areas to offset the unexpected costs.
Lac La Biche County councillors say they will be looking at all areas of the municipal budget for relief.
For relief on fuel prices, the MLA says he has the best solution.
"If I am elected Premier, I will make sure we have the lowest fuel prices in Canada."
Several candidates are in the running to take over the leadership of Alberta's United Conservative Party. The election date for the role is slated for October 6.
Highest in Lac La Biche
Across the region, the price for a litre of regular gasoline or diesel varies greatly. In Lac La Biche on July 6, pump prices were between $179.9 and $1.81.9. At the same time in Bonnyville, regular gas was selling for more than 10 cents a litre cheaper, with stations reporting regular gasoline prices between $1.68.9 and 1.70.0 per litre. In St. Paul on Wednesday afternoon, a litre of regular gasoline was selling between $1.78.9 and 1.80.9 per litre.
