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August 03, 2016 - 4:30 PM
KAMLOOPS - You can expect to see a noticeable price increase at the gas pumps in Kamloops relatively soon.
Senior petroleum analyst for GasBuddy.com Dan McTeague says an increase in wholesale price is to blame. Prices in the city are expected to hit up to $1.10 per litre by the end of the week.
"It’s due to the wholesale price increase we saw last night, pretty much across all of Western Canada," McTeague says. "There was an interruption in price, so that ... caused a 2.5 cent wholesale increase."
Since Kamloops has some of the lowest gas prices in the Thompson-Okanagan region, it's the one city where a spike is necessary for gas stations to make ends meet.
The interruption in price means gas stations are now paying about $1 per litre, and with prices in Kamloops just above the $1 mark, stations are struggling to make a profit.
McTeague says this doesn't apply to "big box" stores that sell gasoline, like Costco, since very little of their gas sales attribute to their overall profit.
But companies have overestimated the demand for gasoline this summer, McTeague says, and after this week's spike, Kamloops gas prices are expected to drop again.
McTeague says there is virtually no risk of a gasoline shortage anywhere in the Thompson-Okanagan this summer.
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