Relief at the Pump to Last Through Next Week
Prince George, B.C. – Gas prices are down around a dime a litre in Prince George from earlier this week.
By Friday afternoon gas cost 105.9 a litre at Costco and 109.9 most everywhere else.
“A lot of it has to do with the fact that U.S. prices, particularly out of Chicago, went up as much as 50 cents a gallon at the end of May, beginning of June,” says Dan McTeague, senior petroleum analyst at GasBuddy.com.
“And those prices have now really climbed down rather rapidly and so much so that it’s caught a lot of gas stations off guard because of course when prices drop that dramatically, they’re still left with inventory that’s very expensive. But they’ve clearly gone through that.”
He says the good news doesn’t stop there as the price of wholesale gas should drop again by Monday with prices dipping as low as 104.9 or 105.9.
“We’re looking at prices on the whole about 18 cents a litre less than they were at this time last year so big savings for consumers and I’m not seeing much change between now and Canada Day.”
Comments
On the other Hand, Gas goes up and you are left with Inventory paid for less ?
Exactly, but they don’t want to mention that!
Last I heard the prices went up because the refinery in Alberta shut down due to the forest fire. And it was a Petro Canada refinery so shouldn’t have affected us anyways since our refinery is right across the river, but the gas companies cashed in on what is called a non event.
now they change the story.
NO ! they say there is no consultation, conspiring or co-ordination of rate increases amongst the gas companies…
my response is two words and neither can I print here…
“it was a Petro Canada refinery so shouldn’t have affected us anyways since our refinery is right across the river”
If there is a deficit or a surplus of any commodity in a supply chain which is available from a larger marketplace, whether it is strawberries or gasoline or Van Heusen shirts, it will affect the whole price structure at the retail level. There might be short periods of adjustment, but over the longer term, as wholesalers find alternate sources, prices will be adjusted throughout the supply chain to come closer to the median price.
The thing which makes gasoline unique, is the local price at any given service station is available for all to see in addition to the internet having a site like gasbuddy which allows people to post current prices at the pump for all purchasers to see.
That does not happen with grocery products, for instance. They still use an old fashion paper based system of flyers which come out weekly in PG and likely many other communities.
When it happens with Van Heusen shirts the only system which is out there for some products such as books, electronics, tools, etc. are sites such as amazon.
None of those are conspiracies, consultations or co-ordination. What it is, is modern technology providing information to all involved in the system, including customers, in much more immediate fashion than was previously possible.
But, people do love to hang onto conspiracy theories. They are just that, theories. Time and time again, when the industry has been examined for price fixing and other anti-competition practices, nothing of any significance has been found.
Credence to the ‘conspiracy theorists’ has been lent by the WAY in which the oil industry has been examined for price fixing and other anti-competitive practices. Governments of all stripes have never been very anxious to conduct a thorough examination of the charges often levied against ‘big oil’. When, in the few instances there has been such an examination, those in government making such charges have been starved of the financial resources necessary to properly research and present their case, while the oil industry has always been able to afford a battery of lawyers to tie the whole process up on legal technicalities. Few will now remember the struggle former Socred Omineca MLA Cyril Shelford went through to try to get answers on oil company pricing practices. It was truly a ‘David against Goliath’ struggle, and financially Shelford never had a chance.
every penny they raise the price at the pump is $1 million clear profit a day…
“every penny they raise the price at the pump is $1 million clear profit a day…”
That is a nice statement … but show me that it is a statement of fact.
1. define the region – PG, BC, Canada, which is it?
2. define how the “clear” (I assume net) profit relates to the total net cost.
I do not know what you think is disgusting.
Tell me what the total operating cost is to have service stations throughout the country and distribute the gasoline.
Even if they were to be able to get FREE gasoline from the refineries, and they were to charge only for the operating cost downstream of the gasoline storage facilities we would not be able to get free gasoline from the local pumps.
Has anyone seen what that operating cost per litre would be. The closer the acquisition cost is to zero, the greater the proportionate operating cost will be until it finally reaches 100% at zero fuel cost from the refinery.
Crude oil is below $50. This is disgusting.
What I find that is disgusting, is , people that drive down my road, turn around , empty all their fast food garbage out the window on my road and speed off. I’ve had enough. I am going to go ballistic on the next idiot that does this. You can read about me on the local rap sheet under “assault”. Signed…..”pissed off”.
Same sounding story different excuse every time. This week’s it’s about Chicago. Can’t wait to read what it’ll be like next month when summer really takes off.
You bitch about oil companies and totally ignore the carbon tax grab, why is that?
TransCanada pipelines suing the US government for 15 billion under NAFTA for the cancellation of Keystone XL.
Interesting BAMBAM cancelled keystone but since he took office about the equivalent of five Keystones have been built throughout the US with hardly a peep.
The price used to be if a barrel was $80 then it was around $0.80 at the pumps..but that was stopped when oil dropped.. Now it’s what ever they say.
There are millions of barrels stored in tankers offshore that was stored when the price was cheap…they will refine it once the price increases till they make a huge profit.
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