Will Costco Gas Pumps Make A Difference?
Wednesday, September 11, 2013 @ 3:45 AM
There are more than a few people watching to see what will happen to gas prices in Prince George when COSTCO opens its pumps soon.
Traditionally Prince George has been amongst the top three most expensive places to purchase gas in Central and northern BC . We are home to a refinery , but that hasn’t had any effect on prices.
In order to look at why the price of fuel has been more expensive than even communities such as Burns Lake and Vanderhoof you have to look at who owns and operates the facilities.
The bulk of the gas stations in the city are owned by the companies, the major oil companies in the business who influence the price not only at the wholesale level , but all the way up to the retail level.
The local owners, and there are a scant few , will find difficulty in trying to reduce prices to get a better share of the market when they run the risk of facing the wrath of the large oil companies who can squeeze them at will.
So that has left us in a position of taking what has been handed to us. Now along comes COSTCO who, when they entered the market in Kamloops, had the effect of reducing mark ups.
Will that same set of circumstances force the majors to bring the cost of the product more in line with what normal mark ups should be? Let’s stand back and watch the action.
This week the price of gas dropped another penny a litre, is that a suggestion of things to come?
I’m Meisner and that’s one man’s opinion.
Comments
I predict it will make no difference whatsoever in regards to how much people complain about gas prices in PG ;)
It will indeed be interesting if it makes a difference.
I would have thought SuperStore’s pumps would have made a difference but they kept their pump prices in line with everybody else. SuperStore’s mother company, Loblaw, definitely has enough clout to tell big oil to take a flying leap and set their own pricing if they wanted to.
I predict there will be an increase in Costco memberships even if the price doesn’t change much. My Costco rebate and cash back will be alittle higher too!
I agree with NMG. The price might drop a penny or 2. Maybe, dare I say it, a nickel or even a dime. But that would put the price at $1.249. That’s hardly cheap.
I remember when it went over $1. That certainly made people stop and take notice for maybe about a week.
What really needs to change is our way of using gas. If gasoline prices really bother you that much, buy a fuel efficient vehicle instead of a big V8 that gets 12 miles per gallon.
If most people aren’t willing to give up this luxury, then I guess the price of fuel isn’t that high!!
That’s Right. Despite what people think, PG is doing quite good economically, more and more people can afford not only new big houses, but big SUV’s and Big Diesel trucks, and all the fuel they need. And with the winter roads I would never trade in my 3/4ton Diesel pick-up for some fuel efficient hybrid that I would need to push in the snow.
We live and work in the north, transit is limited and for many we need our trucks for work. Its easy to say its luxury but a VW bug wont cut it.
The cost of fuel is of national economic importance as it relates to competitiveness and the standard of living.
As such Canada should have a national fuel pricing policy to ensure oil companies are not simply using world troubles to inflate Canadian energy prices domestically using unrelated conditions elsewhere in the world to justify windfall profits.
I think we should have an export flat tax for carbon of at least 25% on the cost of oil or gas here in Canada at the point of export. We could pay off the Canadian debt in a decade, and eliminate the GST, making the competitive position of the greater Canadian economy far stronger in the long run.
If world markets have a barrel of oil priced at $125, then this tax would force it to be only a $100 here in Canada as the arbitrage is adjusted by oil companies eager to export even at a $100 a barrel. It ensures we have at least a 25% advantage on competitiveness with Canadian energy resources. And yes Canadians do have a right to say how our energy resources are exploited.
We also need some incentives for more Canadian refineries… maybe an export tax on the oil, but not the finished product is what is needed? What we need is a national energy program.
NoWay, I asked Costco about the cash back, and was told gas purchases would not work towards this. :(
Will be nice. Maybe pay the same as those “weathly” indians do.
I have a car with a 55 litre tank capacity. On returning from the USA at the end of August I filled the tank up from almost empty. The cost was about US$51. The currency exchange at the time was about 5% so C$54 roughly.
Two days ago I filled up the tank here from being around the same empty level. The cost was C$71.
The price in that part of the USA is influenced by Costco and a few Arco stations. The difference can be as much as 10 to 15% from other stations in the same community. The majors really do not budge, seemingly relying on card member customers. Gas at Indian reserve casinos is generally around the same price as Costco.
The thing I would like to see is someone taking on the government and credit card industry by providing a lower cash/debit price. There is a US$0.10/gal price difference at most stations in Washington state for not using a credit card. That would drop the price another 2.5 cents per litre here.
======================
Remember the ad about how the snowplow driver gets to his vehicle after an overnight storm? ;-)
The most popular car being bought at the moment is a Ford pickup. Most of those are not sold for work purposes, nor in the north or remote areas or farms in the south. They are going to urban drivers.
remember NAFTA!!
No one in government is going to take on the ‘credit card industry’ when the average Canadian personal debt level is where it is in ratio to disposable incomes. And still climbing. Governments, no matter which Party is in office of all the current contenders, do not want to even begin to address this issue. So if we’re perpetually in a situation where the average Canadian can’t fully pay for what he’s done from what he’s done, but only from what he’s doing or is going to have to do, and each year it becomes even more difficult for him to do that, the ‘credit card industry’ and those who have a monopoly on the creation of financial credit generally (the same organisations, basically) are going to call the shots. And what they make in comparison to what ‘big oil’ makes from our bloated gas prices would likely truly inflame public fury if the truth were only known.
No comments allowed on the Leo Creek story?
NAFTA is flawed, which is part of the reason we pay such high prices for Canadian energy. Even if we were blocked from an export tax on Americans there is nothing stopping Canada from implementing this kind of a tax on off shore exports.
With 3 million barrels a day planned for export off shore in the next few years at $25 a barrel arbitrage for the government revenue we would be looking at $75 million a day or over $27 billion a year in additional revenue… just from the proposed off shore exports alone.
Of course if oil companies didn’t want to pay an export carbon tax, then they could always refine it here in Canada.
I owned a small SUV that got great gas mileage, but now I own a small car that has even better mileage BUT last winter I had problems driving when the roads weren’t plowed and I have to stay on paved roads as the undercarriage is low. Years ago I had a small car with low undercarriage and I didn’t have problems, as everyone one else was driving the same type of vehicles. It is the big 4x4s & SUV with their wider width that causes problems for my small car.
Too bad Costco will NOT have diesel fuel, only gasoline.
I have a solution graymare. It is called SUBARU. ;-)
No comments on the carbon tax scam? Eliminating that would drop taxes 7 cents right now. Australia just elected a government that will cancel their tax. People keep blaming the oil companies but ignore the taxes.
Check out the cheapest stations throughout BC and Alberta, almost all are Costco.
Eagleone:-“Even if we were blocked from an export tax on Americans there is nothing stopping Canada from implementing this kind of a tax on off shore exports.”
——————————————-
Except our financial masters don’t believe it is good for us, (or any other country where they’re in control, for that matter), to be too prosperous. So what could be won’t be. Part of our problem is we’re still too focused on ‘jobs’ and too little on ‘incomes’.
I love those people that claim they need those big jacked up 4x4s. All I’ve driven for the last 16 years have been small cars. I drive 20km on a dirt road that has some very steep hills. Front wheel drive with good studded winter tires. 6 inches of snow? Plow right through it. Costs me maybe $150 a month in fuel for 20+ days a month of driving.
I love those people that claim they need those big jacked up 4x4s. All I’ve driven for the last 16 years have been small cars. I drive 20km on a dirt road that has some very steep hills. Front wheel drive with good studded winter tires. 6 inches of snow? Plow right through it. Costs me maybe $150 a month in fuel for 20+ days a month of driving.
Some people can afford those big rigs, more power to them. I suppose you wonder why a person would buy a power boat instead of a canoe?
People are free to buy and drive whatever they want.
For the record, when I lived in PG I had and drove through all 4 seasons:
– Pontiac Firefly
– Ford F-150 4×4
– Honda Fit
– Toyota Tacoma 4×4 (which I still own)
The only one I ever got stuck in was the F-150 4×4. I had no issues navigating winter city and highway conditions in the Firefly or the Fit.
My wife drove VW cars with winter tires and with their Electronic Stability Control system, they handled better than any of the 4 vehicles I drove.
The simple fact is that 4×4 vehicles are typically not NEEDED for most people. They are nice, yes, but let’s not confuse a convenience with a need.
I drive trucks because I like them and I know that they are bad on gas and that I pay more because of it. That’s life!
My diesel fuel prices are 10 cents a liter less than gas at most stores and I get 18mpg average city driving according to my dash which is fairly accurate by the km’s driven and fuel I put in. Took a trip to Quesnel and hit 26mpg average pretty quick. And it is a full size crew cab 3/4 ton pickup that I haven’t even had a chance to ‘chip’ for mileage yet. Driving a beast does not necessarily mean you are going to get hit hard at the pumps. Plunk 75 bucks in the tank and my dash tells me I am good for 450 more km’s around town. My Toyota v6 couldn’t even do that
I get the same city mileage as you slinky, but I only get about 21-22 on the highway. That’s a V6 Tacoma Double Cab 4×4.
The diesel’s can get good mileage for sure, but you also pay a huge premium for the initial cost and maintenance. I think most of them are around a 7-8K engine option alone. That will buy allot of extra gas, probably more than most people would use over the life of the vehicle. Of course, they do make sense for certain applications.
Cashback works if you have a Costco Amex card doubletrouble.
I’ve gotten 28mpg out of my 2012 F150 with the 5.0l V8. That’s damn good for a full sized truck. With the way the fuel mileage is going in the bigger vehicles these days I’ll never go back to owning a little car. I’d sure hate to plow into a Moose or Bear in one of those little cars….
Why all this uncertainty about Costco gas prices when all you need to do is click on Gas Buddy and you can see who has the best price.
In Abbotsford Costco does not have the lowest gas price.
Cheers
costco gas prices
Would not want to own a diesel truck outside of a warranty. Injectors can cost up to 1000 apiece and over 20 grand to replace an engine if needed. But with all that torque sure nice to drive on the highway. Friends King Ranch hardly ever shifts on the highway and that is with 2000 lbs. in the back.
Some people chock up the cost of the big stuff to entertainment, not wanting a sippy cup.
Gus, I use to own a Subaru, but my present car gets better gas mileage and has better handling.
Mine is a new model 2013 Imprezza Sport. Driving from here to Bellingham I use gas at the rate of just under 7litres/100km which I think is around 33m/USgal.
As far as winter driving, I have driven in snow all my driving life, having learned in Ottawa. Of course, they plow snow there.
Sort of like the ski hills when I first got here. Hills and roads here were powder and that lumped snow after people laid tracks for a few hours. Hills and streets in Ottawa were groomed and plowed ….
For sissies, I guess rather than yahoos in trucks …. ;-)
Norway has almost one trillion from investing their their oil and gas money, and Alberta is in the hole, amazing.
The one thing I noticed my first winter here was that it’s rare to see a vehicle on the road that DOESN’T run winter tires and that goes for cars, trucks and SUV’s. It’s pretty much the norm here.
Being one of those gas station owners I can tell you there is no
Profit in selling just gas. The profit is being made by the refineries
As they are using oil sands oil at a $20 discount and not passing
On the lower crude cost. Even a true independent like superstore
Has to buy the product from a refinery. The wholesale price is set
by big oil. Somedays they wont even have product for you because
you do not have allocation. So yes Ben is right Big Oil controls the
street price by way of wholesale price and allocation. Piss them off
and guess what you have no allocation this week. You want lower prices
like the US we need a new refinery, then and only then will prices come
down. Supply and demand right now refineries are at 95% capacity so there is no need to push prices down.
Classic tail wagging the dog. Costco won’t make a difference.
Norway. My relatives there haven’t worked their whole adult lives. No way that can be rationally implemented here. your smarter than that BS seamutt.
Dow7500 just what is your issue? All I did was post a fact about Norway and you seemed to get all cranked. Did I miss something? What BA, please clarify?
Could be his relatives got an inheritance he should have gotten all or part of …..
Many possibilities …. don’t understand why he brings that every now and then. This is not the first time.
Have you ever sought the help of a counsellor about this little issue of yours, Dow7500?
I love those people that claim they need those big jacked up 4x4s. All I’ve driven for the last 16 years have been small cars. I drive 20km on a dirt road that has some very steep hills. Front wheel drive with good studded winter tires. 6 inches of snow? Plow right through it. Costs me maybe $150 a month in fuel for 20+ days a month of driving.
PineNeedle, drive what u will, but I don’t feel safe in anything other then atleast a 1/2 tonne truck around this area. All it takes is a nice crash to get in a serious accident. I don’t trust small cars around here when everyone else is in big trucks.
Comments for this article are closed.