Penticton's fuel market is presently selling gas below cost, says Gas Buddy Senior Petroleum Analyst Dan McTeague. He doesn't know why it's happening, but says it can't last long.
(STEVE ARSTAD / iNFOnews.ca)
May 15, 2019 - 10:30 AM
PENTICTON - Penticton appears to be leading the way when it comes to low gas prices in the Thompson Okanagan this week, but don't expect it to last with a long weekend on the horizon.
That certainly wasn’t the case at the beginning of the month, when two Penticton gas stations spiked the price of gas to 158.9 cents a litre on May 1 in a short-lived action that wasn’t followed by the rest of the city’s fuel outlets.
The prices at Penticton pumps so far this week are much lower than other cities in the region.
Today, Gas Buddy is reporting fuel prices in Penticton ranging from 128.9 to 131.9 cents per litre.
Gas Buddy market analyst Dan McTeague says Penticton merchants are currently selling below cost by a few cents a litre.
“It’s a good thing for consumers. Why they’re doing it, I have no idea, but it looks like they’re all into it,” he says. “Big companies can ask your supplier to ensure you can match those prices, but don’t expect to make a lot of money selling gas. You'll have to opt to selling a lot more beef jerky to make up the difference."
He says early May’s price spike was puzzling, being “a little high.”
“Normally, they don’t go above 10 or 11 cents above wholesale price,” he says.
According to his information, Penticton is “by far and away” the cheapest city for gas prices in B.C.
“You might want to fill up your jerry cans,” he says, adding gas stations are losing around nine cents a litre at Penticton’s present pricing.
Other Okanagan cities aren’t faring as well, with Kelowna prices sitting at a uniform 139.9 cents per litre for those stations surveyed by Gas Buddy, while in Vernon gas prices are 140.9 cents per litre for regular gas.
Kamloops has more variability in its gas market pricing today, with prices ranging from 134.9 cents per litre at Kamloops Costco, to 137.9 cents per litre at the Mobil station at 910 Columbia St. and Summit Drive.
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