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Undercut gas station owners plan to protest city hall

A half-dozen undercut gas station owners furious about a new station with consistently low prices in Sarnia say they will protest outside city hall with friends and family this Thursday.

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A half-dozen undercut gas station owners furious about a new station with consistently low prices in Sarnia say they will protest outside city hall with friends and family this Thursday.

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Gas bar owner Naveed Khan, one of the people taking part in the Thursday protest, called the low fuel prices at the station at the corner of Highway 40 and Indian Road “illegal.” On Tuesday morning, the low-price option was $1.07 per litre, almost seven cents cheaper than anywhere else in the border city.

Gas receipts from the Williams Drive station in August show some taxes – but not HST – which combines provincial and federal taxes in Ontario. First Nations people are exempt from some taxes with proof of status, but other people must still pay full taxes — even when the gas is purchased on First Nation territory.

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“We’ve talked to the city. We’ve talked to the Ministry of Finance. We’ve talked to the (Canada Revenue Agency),” Khan said. “We are told people are working on it, but we haven’t heard anything.”

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Letters have also been addressed to Conservative MP Marilyn Gladu, who said in August she had heard “complaints from numerous constituents” but deferred concerns to the Canada Revenue Agency. The Ministry of Finance did the same.

Recent letters between Khan and the revenue agency suggest the case is under review.

On Tuesday afternoon, deputy clerk James Jenkins confirmed the gas station owners did contact the city about the protest and that all concerns had been directed to the local member of parliament.

“We believe it to be a federal matter,” Jenkins said.

The protest, from 11:30 a.m. to 1:30 p.m., is meant to put pressure on city officials. Roughly 30 to 40 people are expected to come out and support the small business owners, Khan said.

“We are hoping the city takes action,” said Khan, adding no businesses have been shut down due to the undercutting. “Not yet. But they’re going to have to.”

lpin@postmedia.com

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