Gasoline Prices Are Up, and Going Higher
Prince George, B.C. – The price of gasoline has jumped up in recent days and there is every indication we can expect another bump leading up to the Easter weekend.
Costco on Range Road has been selling its regular gas in the mid-90 cent range in recent weeks but that has shot up to the current price of $1.04.9. Most other dealers in the city are charging $1.07.9. The BC average is $1.26.6 per litre, Vancouver’s low price is $1.30.9, Kelowna $1.19.8 and the national average sits at $1.11.5.
Regarding the price increase Dan McTeague, Senior Petroleum Analyst with GasBuddy, says “we’ve seen a pretty steep increase on the wholesale price for gasoline out of the relevant U.S. market, the Chicago stock market. All of western Canada with the exception of the lower mainland and Vancouver Island are influenced by the health and output of U.S. refineries.”
“We’ve been price-takers in Canada now since 1984 with the shutdown of the National Energy Program. So, ever since then we’ve paid for our prices in U.S. terms, always following the American market and for our region, everything from the BC coast all the way to Thunder Bay, Ontario, what happens in the United States matters.”
McTeague says “we’ve seen about a 20-cent-a-gallon increase, good enough for about a 5 or 6-cent-a-litre hike. And that really means that, if I’m a gas station owner, even though I have a small refinery in the back yard here in Prince George, it still costs me about $1.04 to buy my gasoline, that’s wholesale price.”
“So if you’re seeing a $1.04.9, they’re selling without a margin to operate or, more importantly, even at $1.07, when you accept credit cards which charge 2 sometimes 3-cents a litre, you’re not making much to turn on your pumps unless you have a generous bank, a decent wholesaler who’s prepared to spot you money during taking a loss or you have a rich uncle.”
“In any scenario what it really means is that likely by mid-week and yes, before the holiday weekend for Easter you’re likely to see a bump on the price of gasoline to perhaps as high as a dollar-10, dollar-14. If it doesn’t happen it just means that you’re really benefitting from a gas price war, because they can’t continue to sell at a loss.”
The question then is, will that bump just be temporary or will it be prolonged? McTeague says “well two things happen next week, not just the holiday but we also move to what’s called the Summer Specification gasoline, which means it does cost another couple of pennies for refiners to produce the quality of gasoline that doesn’t evaporate under higher temperatures, and that’s a national mandate from coast to coast in Canada. It starts April 15th and means that all gasoline must have a certain RVP (Reid Vapour Pressure) mandate. Your gasoline has to be more resistant to higher temperatures as we hit the summer months. That stays in effect until September 15th and will mean higher prices at the pump.”
McTeague says RVP “really is a real thing, it’s not something that’s made up or used as an excuse.”
His advice to motorists? “If you’re thinking you need to pick some gas up before Easter, don’t just think about it, do it.”
So Albertans didn’t mind Eastern b******s calling the shots, just as long as they weren’t Canadian ones. lol
for every cent they raise the price I hear it is $1 million a dollar day pure profit… so is it profit or us influence… it seems every holiday they have an excuse for a price increase, the next one will be an old repeat, they are changing over to summer gas which they will claim costs more to refine…..really?
To buy it or not to buy it, to drive or not to drive is the Question and on the next
Page the self serving Ad by the Mls Guys ” It is a Buyers Market” . What Next?
The gas companies know they can play with prices all they like, the government won’t complain they get their share, and we are our own worst enemies as we continue to pay the ransom prices, myself included.
They just come up with some fabricated to try to make us feel less raped.
Nothing but crooks and the news media does not help. All that has to happen is for someone to start making up stories why the price of fuel is going up and were all supposed to rush for a fill up SAP. Wonder what the price would be without Costco?
probably $1.40 like Vancouver????
Look at the taxes, gotta love that carbon tax.
Buy/drive smaller vehicles. Stop using the big trucks for simple commuting purposes and that never get used to capacity.
Forget that, I am keeping my 4 wheel drive pickup. The more gas I burn the more carbon tax I pay, the more carbon tax I pay the quicker I will help save earth. After all isn’t that the purpose of the carbon tax, to save the planet?
Ruts , Glory ! Rollin coal ! And doin jumps !
Smaller vehicles also being produced lighter with reduced crash integrity. Death and injury increases with these vehicles. This is the direct result of increased so called efficiency laws.
There’s a reason that in 2016 world wide there were 2 million plug in electric cars on the road . The reason is economy . I’m lusting after the Egolf .
Bovine excrement! The reason is government subsidy, paid for by fossil fuels.
Im very interested to see what happens with these electric cars when it comes to road tax’s. Right now they dont pay their part with extra taxs collected off fuel, hearing rumors of a road tax included when you purchase insurance.
Canada hasn’t had a new refinery in 40 years. I figure a new refinery for the export market would make the most sense for the Bear Lake area in an air shed that won’t compromise large population centres yet is close to the main oil pipelines and source, as well as close enough to a large population centre (PG) to service its needs. Then export by rail and Canada becomes the price maker, rather than the price taker.
Actually Canada’s newest refinery should be operating this year producing diesel. The cost…8.5 BILLION dollars. Better stick to moving hills across the road in PG fantasy….
Environmentalists in Canada do not like refineries yet they use a lot of fossil fuels , hippocrats………Our oil goes to the USA is refined and comes back to us and we pay for gasoline in US dollars. Carbon tax is a joke, does not nothing for the environment , only makes the gov. rich and the user taxed to death. Too many trucks here and not used to capacity, solution is to drive a more efficient vehicle. In 2025 diesel fuel vehicles will be phased out of Europe and more electric cars will appear. It will come here in time also, the polluting internal combustion will eventually die. For now, those who choose to drive huge fuel guzzling vehicles do not complain, pay and pay more tax, make the oil companies rich or get rid of the junk. There are choices in life.
After spending 3 months in the Phoenix area and paying an average of 70 cents per liter in Canadian dollars it is a bit of a shock to return to the land of high taxes, dusty streets, pot holes, and expensive gasoline.
I would be happy to pay the 1.07.9 you all have in PG…it shot up to 1.18.9 in Quesnel a week ago…
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