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Hot and cold; up and down

What do the weather in Central Alberta and the gasoline price hikes over the past few days have in common?
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What do the weather in Central Alberta and the gasoline price hikes over the past few days have in common?

Both have been hot topics for discussion.

The weather has been unforgiving worldwide, and the skyrocketing cost for gasoline has left a bitter taste in the mouths of consumers.

First the weather. It’s a good thing Environment Canada does not rely on funding from lottery winnings to keep its weather predictions on the mark. It’s picking the wrong numbers.

Weather predictions locally have been off the mark. Granted, Environment Canada predicted mild temperatures hitting above the 0C mark over the Yule break. The temperatures did rise on Christmas Day, then suddenly plunged to bitter cold, while the forecasts changed daily.

But like any other science, predicting weather will never be exact as long as Mother Nature calls the shots. We are at the mercy of a complex ecosystem that can suddenly change its mind, no matter what the predictions.

And we can grumble all we want, but it’s out of the hands of Environment Canada forecasters.

Now the gas-price hikes.

That’s something disgruntled consumers can legitimately complain about. Motorists are at the mercy of the energy giants, which thrive on opportunities to maximize profits.

Last week, the price of gasoline shot up almost 10 cents a litre at many outlets in Central Alberta in just one day.

Is it coincidence that the price hikes came in time for the New Year’s Day weekend, when Canadians are more likely to be travelling?

Is it coincidence that, traditionally, the price of gasoline shoots up shortly before most holiday long weekends, when increased travel is expected?

Energy giants and local retailers can try their best to explain away this trend, but consumers have a right to be skeptical. It seems as predictable as a cold snap in December.

Last week, the price of gasoline in Central Alberta went from a low, on average, of around 93.9 cents a litre to an average of around $101.9 cents a litre — within a few hours.

Area retailers the Advocate interviewed said they upped their prices to remain competitive, because their competitors were increasing their prices as well.

Consumers have a right to be puzzled. To remain competitive, would the logical step not be to under-sell your competitor?

How does raising prices at the pump to match your competitors’ hikes allow you to remain competitive? Consumers, logically, would pull into the fuel outlet with the lower prices.

It is not a competitive environment when retailers hike their prices because the majority of service stations are doing the same.

Now that festivities to welcome the new year are over, and the intense pressure to “remain competitive” by cranking up prices has subsided, the price of gasoline should soon fall.

It might even be more predictable than the weather.

Rick Zemanek is an Advocate editor.