Gas prices are sitting lower than normal all across the continent because of COVID-19.
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April 28, 2020 - 7:30 AM
Gas prices remain significantly lower than normal due to a combination of factors, none of which explain why pump prices in the Interior are currently higher than the Lower Mainland.
Michael Ervin, senior vice president of Kent Group Ltd., confirms cities like Kamloops and Kelowna are seeing prices up to 20 cents per litre higher than Abbotsford.
“Kamloops is really in what we call a different supply orbit than the Lower Mainland, and Kamloops pretty much relies on its refined product supply from Edmonton via the Trans Mountain Pipeline and the passengers on that pipeline really compete for placement,” Ervin says.
Kamloops gas prices have increased from a 2020-low of 82.9 cents per litre last week to 94.9 cents per litre this week and could also be due in part to a potentially low supply.
“It could be that inventory of gasoline at the Kamloops fuel terminal… might be on the lower side, and that tends to push up the wholesale prices somewhat, but they're not terribly out of sync with other prices in places like Kelowna,” Ervin says.
As of Monday, April 27, prices in Kamloops were between 90.9 and 94.9 cents per litre, one of the highest pump prices in the Thompson-Okanagan, according to GasBuddy. Right now in Penticton, gas will cost you between 89.9 and 90.9 cents per litre, in Vernon its between 83.9 and 85.9 cents per litre. Throughout Kelowna, GasBuddy reported all pump prices at 89.9 cents per litre yesterday.
Overall, the prices at the pump are lower than across North America than they've been in years. Ervin says this is due to the COVID-19 pandemic because the demand for fuel has dropped while people stay home. He expects the prices to stay low while the virus puts normal life on hold.
“Generally speaking, right across North America because of the low demand for gas in particular, we expect that prices will remain fairly low and that speaks both to low demand for gasoline which pushes down the wholesale price, as well to the low demand for crude oil that makes gasoline,” Ervin says. “As much as consumers might be enjoying low pump prices, I think we all would like to get back to our normal lifestyle as well.”
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