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Letter to the Editor Cost of gasoline June 10, 1983 refiner normally guaran- tees the dealer a mar- gin, typically 2.8 to 3 cents per litre. These costs total over 37 cents. Any price in excess of this figure goes toward the costs of refining the crude oil, distributing Mr. Jack Stokes, M.P.P. Lake Nipigon Room 186 Parliament Buildings Toronto, Ontario M7A 1A2 Dear Jack: (errace Bay-Schreiber News, Wednesday, June 29, 1983, page W sumers than would re- sult from...governmen- tal regulation and that es prices would be increas- ed under regulation." The Ministry of Energy monitors the marketing of petroleum products on a continuous basis. Thank you for your letter of April 26th, 1983, concerning the variable cost of gasoline in Northern Ontario. The refinery industry in Ontario and through- out Canada is facing a very difficult marketing situation caused by a combination of factors, the most important of which is energy conser- vation. The industry re- ports that, on average, refineries in Ontario are running at only about 65 per cent of their capa- city. To make matters more difficult, they say, the mix of products which can' be made from a barrel of oil does not match the requirements of the market place. As a result, in order to pro- duce sufficient quanti- ties of products in rela- tively high demand (e.g. diesel fuel) the refiners are forced to produce surplus quantities of other products such as gasoline. These surplus quantities of other pro- ducts such as gasoline. These surpluses result in periodic price wars. A refinery in Ontario currently pays about 22.7 cents per litre for crude oil. Gasoline sold at the pump attracts combined federal and provincial taxes of 11.6 cents per litre. We are informed by the industry the products and finally toward profit to the re- finer. Clearly, the re- finers are losing money heavily when they sell gasoliine at 21.9 cents per litre at Thunder Bay. At $3 cents per litre in Schreiber, depending on transportation costs, it would appear that they are making a return on their investment. Fort Severn, of course, is a particular case. Petroleum pro- ducts must travel a long way before they reach -a consumer in Fort Sev- ern. If gasoline is brought from a refinery in Sarnia, it is first sent by pipeline to Toronto. I understand that it is then transported to Moosonee by train and is then flown into Fort Severn, often in large pouches strapped to the sides of light aircraft. The local distributor must maintain storage facilities in Fort Severn and the costs of these facilities must be spread over the small number of customers in the area. A Royal Commission was establishes by the Government in 1975 to examine petroleum pro- ducts pricing. In his report of June 1976, the Commissioner, Mr. Claude Isbister, con- cluded that "the exist- ing markets are giving 'better service to con- can be of any further assistance. a chemical mixture may release irritating gases. Please let me know if I Yours sincerely Robert Welch Minister of Energy Won't Mix : ; ak Never combine bleach with any i other household product such as ammonia, toilet bowl cleaner, rust remover or oven cleaner. Such saspnanans POM a eReeettRee ay. ercccngagpenenees sitet ; } Top students at Schreiber Public School were (l. to r.) Michael Molinski (trophy winner), Sandra Cooper and Brian Doig (certificates of merit). UP FOR THE HOLIDAY WEEKEND Maple Leaf, whole or half HAMS PORK Butt or shank portions 3.95 kg. 1.79 Ib. Centre cut HAM STEAKS 4.39... 1.99 Ib. Boneless ROUND STEAK 5.69 kg. 2.58 Ib. B-B-Q style, B-B-Q ready (Miami) ROAST BEEF 7.45 i. 3.38 Ib. ; ¥ Waste free Medium, extra lean 4.14... that, in addition, the Sanaa Lake Superior Students' Travel Association Pre-Dance LOBSTER DINNER June 30/83: 2 Lobsters (approx. 1 Ib. each); Coleslaw & Roll; Dessert & Coffee. $15.00 per plate Place: Schreiber Recreation Centre Tickets Available at: Schreiber Foodmarket Terry's Sight & Sound (Terrace Bay) Schreiber Recreation Office Or Contact: L. Fraser M. Reid M. Atkinson Held under the authority of a Special Occasion Permit (prior to June 30th dance sponsored by Schreiber Kinsmen). K 6.35... 2.88 Ib. SIRLOIN TIP STEA GROUND CHUCK 1.88 Ib. Shaw Holsum, hot dog or hamburg pkg. of 8 BUNS 69° Planters, 350 gram tin SESAME NUT MIX 2.99 Pronto, 2 roll pkg. PAPER TOWELS... 1.19 4 litre containers ICE CREAM........... 3.99 Betty Crocker, Super moist, 510 gram CAKE MIX... 1.29 Extra soft, 4 roll pkg. Bathroom TISQUES (28020: 1.49 Savaday, 80's PAPER PLATES......2.49 Canada No. 1 B.C. Bing CHERRIES 0 ¢ i ef Fo - 98 Ib. ave even more " . ott? case of 20 Ibs. 1 8.95 = By special request, for the convenience y of our Customers, we now are the ; agents for Lottery Tickets. Wintario, Prices Effective June 29, 30 and July 2, 1983 Closed ALL DAY July 1, 1983 fa * Provincial and Loto Canada. Come in ' and try your luck. SCHREIBER FOODMARKET tr. FREE DELIVERY TO SCHREIBER AND TERRACE BAY © 824-2599 ¢ (Butcher Shop) 824-2037