VANCOUVER (NEWS 1130) – You likely noticed it driving around lately — gas prices spiked between Friday and Monday morning with a jump of as much as $0.10 in some parts of the region.
Industry insiders say prices have increased about $0.12 in just over a week and speculation that it’s being blamed on a rally in Pacific Northwest gas markets, and the fact there’s more demand than supply apparently aren’t true.
Senior Analyst Dan McTeague with GasBuddy.com says it’s a good time to own a gas station or a refinery. “Most gasoline stations, which are corporate owned within Vancouver — certainly Metro Vancouver, are pushing $1.25 a litre and a lot of that has to do with an additional increase to their retail margins. Not only are we seeing higher prices and refinery profits as a result of those price increases south of the border, we’re also seeing retailers do quite well. The retail margin is well over $0.10 a litre.”
And he adds that compares to a $0.07 or $0.08 a litre jump by retails just over a year ago.
If there is some solace here, it’s that with the end of driving season coming up in the next few weeks, McTeague believes it’s only a matter of time before we see prices start to dip. “Drivers will be converging from summer to winter gasoline in less than three weeks and that should have a dampening effect on prices. I think we’ll be back below $1.20 a litre, but when that happens is really the question.”
Remember, BC drivers pay some of the highest gas taxes in the entire country.