In Edmonton, Alberta, the cost of fuel is experiencing significant disparities among gas stations, with some charging up to 20 cents less per liter than others. This phenomenon, referred to as “#gasbarshenanigans” by Dan McTeague, president of Canadians for Affordable Energy, highlights the price manipulation practices employed by gas stations to maximize profits.
With the wholesale cost of fuel in Edmonton hovering around 96-97 cents per liter, the addition of taxes and fees brings the total replacement cost to $1.43-$1.44 per liter. Typically, gas stations operate with a retail margin of 7-8 cents per liter to cover expenses and credit card fees.
However, some gas stations are selling fuel at prices below this margin, raising questions about their ability to sustain such practices. McTeague speculates that these stations may be relying on additional revenue streams from store sales or other strategies to offset the losses incurred from selling gasoline below cost.
While Calgary also experiences price variations, its fuel costs remain higher than Edmonton due to transportation expenses from refineries. According to McTeague, current gasoline prices are a reflection of market trends across the U.S. Midwest and Western Canada.
Consumers are advised to take advantage of the current low prices, as the sustainability of these disparities is uncertain. Fuel prices may not remain at these levels for an extended period, and consumers should capitalize on the savings while they can.
