Pesky Petrol Prices Possibly Poised For Precipitous Plunge
There’s a decent chance you’ll be trundling around the city stocking up on gaily-wrapped items in the next few weeks, and word on the street is that the fuel you burn while doing it will cost you quite a bit less.
According to Dan McTeague, senior petroleum analyst for GasBuddy, the current price of $1.15 to $1.19.9 per liter in Victoria does not match up with the wholesale price of gasoline — and he says that over the next three or four weeks, prices should plummet by about 15 cents or more.
Says McTeague, “Right now, if I’m a gas station owner in Victoria, it’s costing me about 92 cents-a-litre to buy my gasoline … $1.17.9 means I’m making fantastic money. That’s a retail margin of virtually 25 cents a litre. Almost unheard of. That to me is reflecting of wholesale prices and a reality for gasoline that existed almost a month ago.”
McTeague says that since then, gas station operators have depleted their stashes of higher-priced fuel which were partially the result of pipeline problems and inclement weather. “So, I would expect that gas station owners and operators and those who manage them on the part of the major oil companies will begin to reflect the reality.”
Just for laughs, I checked for the lowest current fuel price in the United States; the cheapest I could find was $1.59 ($2.14 Canadian) per US gallon. Using The Q’s PetroPrice-a-tron 5000 and a conversion factor of 3.7 to 1, I calculate that to be 57 cents Canadian per liter.