Albertans paying more at the gas pump
Some city prices reach $1.389 for regular
We’re living on top of countless oil deposits. But Albertans are suddenly paying more than most Canadians for the fuel we produce.
Some Lethbridge gas bars posted prices as high as $1.389 per litre for regular gasoline Thursday — up nearly 33 cents from last summer.
That compared with $1.295 in Regina, according to national GasBuddy reports, and $1.318 in Winnipeg.
The significant increase, says GasBuddy spokesperson Dan McTeague, was dictated by the large oil refining companies. The price of crude oil is also higher than a year ago.
But that doesn’t justify the profit margins earned by the refiners, some critics say. Ten years ago, they point out, Canadians were paying about $1.35 when the world price for oil soared to $146 per barrel.
The average price across Canada now, GasBuddy says, is $1.361 per litre. But crude is around $67.
Gasoline retailers are also involved in raising the price, McTeague says. Outlets that had been absorbing gradual price hikes set by the refiners decided it was time to protect their profits.
As usual, they all reached that decision about the same time — and agreed on the new price.
McTeague calls that “gas bar shenanigans,” but expects some outlets may back down. Already, he says, some Edmonton retailers have dropped their prices a little.
“These prices will turtle,” he told reporters. “But the point is that we are testing levels that have never been seen before.”
The difference between the Canadian and American dollar is another factor in pricesetting, McTeague points out. While Calgary-based Suncor owns one of the Edmonton-area refineries, others are owned in whole or part by international giants including Chevron, Imperial Oil (Exxon) and Shell.
Some of the nation’s lowest prices currently ($1.274) are reported in Atlantic Canada, where the wealthy K.C. Irving family operates one of Canada’s largest refineries — using crude shipped in from other countries.
But residents of the West Coast, where three of the four Vancouver-area refineries were dismantled, are paying the highest prices. In Vancouver, GasBuddy reports, regular gas now sells for $1.571. In Kamloops, in Kelowna and in Chilliwack — the last stop before the metro Vancouver transit tax is collected — it’s about 10 cents lower. Follow @DMabellHerald on Twitter