The Canadian government is banning bricks and mortar gas stations from selling gasoline and diesel.
The move, which was first reported by the CBC, comes as Canada’s gas supply continues to decline.
In December, the Canadian Association of Petroleum Producers estimated Canadian natural gas demand would fall by 10 per cent to 2.5 billion cubic metres in 2019, down from 3.7 billion cubic meters in 2019.
The government says gas stations selling gasoline, diesel, propane and other natural gas products will have to pay for the goods with gas instead of the proceeds from the sale of petroleum products.
Gas stations that sell gasoline or diesel must now pay for those goods with the proceeds of sales from the gas sold, which is typically sold in the form of gasoline or a similar fuel.
The ban will apply to all gas stations and only to those that have been in business for at least five years, but it will also apply to any new gas station that opens in Canada.
The policy comes as the oil and gas industry is in turmoil, with the price of crude dropping from over $US50 per barrel to less than $US35 per barrel, with more drilling and development taking place.