Fuel prices in Edmonton, Alberta, are experiencing significant variations, with some gas stations charging up to 20 cents per liter less than others. The president of Canadians for Affordable Energy, Dan McTeague, attributes this disparity to the #gasbarshenanigans phenomenon, where gas stations engage in price manipulation to maximize profits.
According to McTeague, the wholesale cost of fuel in Edmonton is approximately 96-97 cents per liter, with additional taxes and fees raising the total replacement cost to around $1.43-$1.44 per liter. Retail gas stations typically operate with a margin of 7-8 cents per liter, allowing them to cover operating costs and credit card fees.
However, some gas stations are selling fuel at prices significantly below this margin, raising concerns about their sustainability. McTeague believes 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 prices remain higher than in Edmonton due to transportation costs from refineries. McTeague emphasizes that current gasoline prices are reflective of market trends across the U.S. Midwest and Western Canada.
Consumers are advised to take advantage of lower prices while they last, as such disparities in fuel costs may not be sustainable or long-lasting.