Usually in business circles, quarterly results come before environmental responsibility. But, for Maxville-based MacEwen Petroleum Inc., environmental responsibility comes before quarterly results.
The local gas station chain, which services Eastern Ontario and Western Quebec, announced last Wednesday that it would be the first in Ontario to offer the new low-sulphur "Canadian Auto Makers' Choice" gasoline. Initially, it will be offered at MacEwen pumps located at 512 Bank St., 3412 Carling Ave. and 1741 Cyrville Rd.
A throng of media, government officials and car manufacturer executives were on hand to praise MacEwen Petroleum for its environmental leadership.
For company president Allan MacEwen, it was just a chance to be different again. "It means we can differentiate ourselves from our competition," says MacEwen. "We've got more flexibility as an independent."
Back in 1993, the company decided to go the environmental route, offering local drivers an ethanol blend. Although the ethanol offering has been successful, MacEwen admits that the sacrifice he made to offer a more expensive gasoline at the same price as regular gas was risky. "In some cases it brought customers in and, in other cases, we lost money. If we have to sacrifice gross margin again, we hope it balances out in volume."
Jim Johnson, president of the Canadian Renewable Fuels Association, says MacEwen Petroleum has acted astutely in catering to the environmental cause. "It's a wise move. Consumers want to do the right thing. There's no question he's used the environment angle shrewdly, because he's listened to the consumer. I'm sure that's why he's moved into this market."
Johnson adds that, since the introduction of the ethanol blend, stations offering the product witnessed an increase in market share. He expects the same type of reaction to MacEwen Petroleum's new low-sulphur blend.
Bill Simpkins, vice-president of the Canadian Petroleum Products Institute is not so sure of MacEwen Petroleum's move. "Most consumers associate quality gasoline with the majors. I would doubt three stations in the city with this pump will have an effect on MacEwen's market share."
For his part, MacEwen is not banking on a short-term solution. "If we can offer environmentally friendly products, we think we'll do better in the long term. I'm hoping we'll be rewarded for acting responsibly."
The low-sulphur gasoline will be supplied to MacEwen Petroleum by New Brunswick-based Irving Oil, which offers this gasoline at its pumps in New Brunswick and Prince Edward Island. The regulations enacted by Environment Canada call for a sulphur level in gasoline to average 150 parts per million starting in 2002, with a further reduction to 30 parts per million by the end of 2004. The Auto Makers' Choice gasoline already meets the 2002 standard.
