Greg Hemming says he won’t pay his Shell Canada fuel bill unless the company reconsiders closing its bulk farm fuel outlets in Saskatchewan.
The Esterhazy, Sask., farmer said he buys about $7,000 worth of fuel each year and owes about $800 right now.
But when Shell closed his cardlock and seven other outlets July 20, he was left without any local service for bulk fuel. When he priced out fuel from a nearby Co-op it was much more expensive.
He could buy extra low sulfur diesel from the Esterhazy cardlock at 61.9 cents a litre. At the Whitewood cardlock, the fuel is 85.9 cents, he said.
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“They’re charging the same price at the cardlock as delivered to the farm,” Hemming said, adding that price is still higher than what Shell charged to deliver to the farm.
He said with no competition, farmers will have to pay whatever companies want to charge. Esterhazy lost its Esso bulk fuel dealer four years ago.
Shell Canada spokesperson Jana Saunderson said the company tried to find a buyer for 14 bulk fuel distributors and cardlocks but was unsuccessful in all cases.
While eight will close completely, the other six will offer either the same service as before or modified service as resellers or authorized distributors of Shell branded products, she said.
“The decision (to close) was not made lightly,” Saunderson said. “The agency business has faced some significant challenges. It’s no longer a sustainable business for Shell.”
The eight communities losing Shell bulk service include Esterhazy, Fort Qu’Appelle, Indian Head, Weyburn, Melville, North Battleford, Prince Albert and Big River.
Even though some of those places are cities, Saunderson said Shell is a small player in a market that serves primarily one industry and can’t compete.
Hemming said farmers have to be competitive, too. That’s why he wants his cardlock to reopen.
He said if 200 farmers didn’t pay their bills, it could send Shell a message. Saunderson wouldn’t comment on that suggestion.
Hemming said the closure will affect his community because the town will no longer collect property tax on the facility. As well, emergency service vehicles relied on the cardlock, he said.
“I’m very disappointed.”
The decision also affects Garry Herperger, the Shell agent in Esterhazy. He has worked for the company for 33 years. He hopes a buyer will still come forward.
