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June 11, 2019 - 2:39 PM
PENTICTON - Gas prices are falling, but not fast enough in Kamloops and the Okanagan, says an industry analyst.
GasBuddy fuel price analyst Dan McTeague says Okanagan, Kamloops gas prices should be following sharp decreases in the wholesale price of fuel in the past couple of weeks.
McTeague says the wholesale price of gas is between $1.19.9 and $1.21.9 today, June 11, which means retailers in markets like Penticton — where a litre of regular is selling for as high $145.9 — are cashing in on a 24 to 26 cent a litre margin.
In Kamloops, with a litre of gas going for between $1.30.9 and $1.37.9, that margin drops to 18 cents in some locations, still much higher than the 12 cent a litre markup McTeague says is reasonable.
The price in Vernon today is around $1.39.9 and Kelowna gas stations are selling at a high of $1.40.9.
“With another two cent a litre decrease coming tomorrow on the wholesale side, between now and the end of the week prices should be down to the $1.34.9 to 1.35.9 range,” McTeague says.
Penticton’s prices remain the highest in the region at $140.9 to $145.9. making gasoline more expensive than Vancouver where McTeague says gas retailers work without a retail margin. The price of a litre of gas in Vancouver was $1.33.9, which is the same as the wholesale price in that city.
“It’s ridiculous. Tonight the replacement cost of gas will be no more than $1.21. How can they charge $1.45.9 (in Penticton)? It’s pushing the envelope, there’s no reason to defend it and I won’t,” McTeague says.
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