Canada:Gas prices set fire to wood sales

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Gas prices set fire to wood sales Supply may not meet demand, firewood dealers warn David Reevely The Ottawa Citizen

With natural gas prices on the rise, firewood in the region could be a scarce commodity in the new year, firewood dealers say.

"I haven't seen demand like this since the ice storm," said John Provost, who runs Duquette's Firewood in Orleans.

Natural gas prices are set to climb to about $1,500 for a typical gas-heated home, up from about $980 last year.

The Ontario Energy Board, which regulates what gas companies can charge for their products, is allowing them to increase rates to account for record-high prices on the international market.

Analysts said prices might not rise much as long as the winter isn't too cold. Then came last week's cold snap, with temperatures 10 to 12 degrees below normal.

Suddenly, fireplaces and wood stoves are being used for more than decoration.

"Most dealers are pretty much sold out," said Alfred Roger, who sells firewood in south Gloucester.

"But there's not much money in firewood," he adds. "The profit is only about five to seven per cent."

Mr. Provost has raised his prices from about $70 for a face cord to about $80. Even so, he says he's making less money than last year.

"Demand's up, but you know, the costs are up, too. Fuel costs more and so people want wood, but it costs more for everyone."

Mr. Provost's business is dependent on gasoline prices. When natural gas prices increase demand for his product, gasoline prices increase his costs of doing business.

"For us, everything from the bush on up is more expensive," he said.

http://www.ottawacitizen.com/city/001211/5025516.html

-- Martin Thompson (mthom1927@aol.com), December 11, 2000


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