Gas prices likely near bottom

The Reginan who watches gas prices across North America says local prices are close to bottoming out after falling dramatically this autumn.

Jason Toews, who runs the Gasbuddy.com family of websites, which watches the prices charged at pumps all over North America, says prices might have another cent or so to fall, but likely no more than that.

And as the winter goes on, it’s possible they might rise slightly in January or February.

But the days when Regina’s gas prices stubbornly sat much higher than those in other Prairie cities could be over, said Toews, who in late October correctly predicted that the opening of a Costco gas bar in the eastern part of the city would set off intensive price-cutting as chains competed for market share.

Toews’ prediction was based on his observation, through Gasbuddy’s collection of sites, which get information from citizen-spotters, how the retail giant’s gas bars in B.C. forced price-cutting there over the last few years. And he knew Costco was planning to open an outlet here.

Toews said that last summer saw all local gas retailers save for a few “renegades”, or independent sellers, charging $1.249 per litre for regular gas. “During this time, the wholesale price of gas was fluctuating — going down — but they didn’t actually pass that along to the consumer,” said Toews, who noted that late October and early November saw it go even higher — to $1.299 per litre.

But on Friday, Gasbuddy’s website for Regina indicated prices here ranged from $1.039 per litre upward to $1.089 — about 20 cents per litre less than two months ago.

Confirming this, Dec. 11 Weekly Pump Price Survey by Calgary-based consultancy MJ Ervin & Associates and Kent Marketing Services said the average price of a litre of regular gas in the Regina area was around $1.088 — compared with $1.009 in Edmonton, $1.01 in Calgary, $1.089 in Winnipeg and $1.177 in Toronto. Saskatoon was at $1.099.

Looking to next summer, Toews said he expects Regina gas prices to sit along a series of plateaus as the wholesale price of gas fluctuates with demand and supply. But compared with the past, “I think that the good news is that we’re going to be paying less for gas.”

Toews said it’s incorrect for consumers to point angry fingers at only gas retailers and nobody else because “a lot of the profit, of course, goes to the refiners — the people who actually refine the gasoline — and the terminals.”

“Typically, in most markets, gas stations don’t make that much money.”