Most Medicine Hat gas stations should have lower prices: analysts

“No one has taken the time to demonstrate just how much money is being made,” Dan McTeague with Canadians for Affordable Energy said.

McTeague estimates gas stations are paying $1.15 per regular litre, taxes included, which leaves them with a profit of almost 25 cents a litre.

It’s profit McTeague says pushes the envelope of fair pricing.

“Competition would bring it within 10 cents, so that would put you at $1.25.9, not a $1.39.9,” McTeague said

Concerns over the Omicron variant of COVID-19 pushed oil prices down recently, leading to a drop in the price of gas charged to service stations.

Motorists then paid less at several outlets in Calgary and Edmonton, and analysts say retailers should have passed on the lower costs to motorists in the Medicine Hat area.

“It’s indefensible that stations in some of those areas haven’t lowered their prices. They are buying at a far lower price,” Patrick De Haan from Gasbuddy.com told CHATNews.

De Haan says Costco uses aggressively lower gas prices to attract customers inside. but for some motorists, even the price of almost $1.20 at Costco is still too high.

“Yeah I guess I have to (take what I can get) right,” one motorist laughed, “What else am I going to do?”

McTeague says hopefully the price at the pumps doesn’t rise in Medicine Hat later this week, when the price to the retailer may rise an anticipated two cents.

by Darren Rathwell

Most Medicine Hat gas stations should have lower prices: analysts

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