By Ashley Legassic

Gas price expert says Kamloops prices should be dropping

Nov 19, 2018 | 9:42 AM

KAMLOOPS — Wholesale gas prices are dropping across the markets, and one expert says there’s no reason for Kamloops gas prices to be as high as they are.

Dan McTeague is the Senior Petroleum Analyst for Gasbuddy.com. He says gas prices have plunged across the Lower Mainland and the Okanagan, but have remained static in Kamloops.

“The price looks very, very sticky, remaining in the $1.30, $1.29, $1.32 range,” he says. “That seems to be exceptionally high and I say that because it costs gas stations today $1.11 (or) $1.12 to buy their fuel. That’s a 20-cent a litre retail margin so I’m fully expecting gas stations to start to reflect their 12-cent retail operating margins, and I would fully expect that we are entitled to at least an eight-cent-a-litre correction.”

Gas prices in Kelowna are currently sitting around $1.26.9, and in the Lower Mainland prices are as low as $1.16.9 in some areas. A major reason for that is the drop in wholesale gas prices and a drop in oil prices, says McTeague.

Kamloops gas prices are generally attached to the Chicago Future Spot market — a market that’s struggling right now, says McTeague. Despite the struggle, McTeague says Kamloops prices shouldn’t be as high as they are.

One Man's Opinion

COLLINS: 'Fairness' is not a word I would use to describe the federal budget

2h ago

Sound Off

SOUND OFF: The NDP's mishandling of drug use in B.C. hospitals

16h ago

ARMCHAIR MAYOR

ROTHENBURGER: Who would survive if we had a recall law for City councils?

Apr 18, 2024

“Unfortunately for us we’re not just dealing with higher wholesale prices, we’re also dealing with unusually high retail margins. Again, I can’t emphasize enough that when I’m seeing $1.32.9 knowing it’s costing most gas stations no more than $1.12 to buy their gasoline, why are they charging 20 cents as a retail margin? It’s beyond me.”