Gas prices see slight drop, but not likely to continue

FORT ST. JOHN, B.C. – Fort St. John area motorists might have noticed that the numbers at area gas stations, after close to 3 months, have finally changed their price signs.

As of yesterday afternoon, the majority of Fort St. John area filling stations were showing a price for regular unleaded gasoline of $1.149 per litre, a drop of two cents. Senior GasBuddy analyst Dan McTeague says that though the price drop is a welcome sign for motorists, it won’t likely continue to drop, nor is it likely to increase. McTeague says that the wholesale gasoline prices out of Prince George continue to hover around the 97 cent/L mark. He says that refineries in the U.S. Midwest and Edmonton areas will probably not be affected by the pipeline in Alabama that ruptured earlier this week. However, he added that those refineries aren’t also likely to be dropping their prices substantially for at least several weeks.

When it comes to the price discrepancy of roughly 8 cents/L between gas stations in Fort St. John and Dawson Creek, McTeague says that the likely explanation is the presence of a No Frills gas station in the Mile 0 City. He says that while other gasoline retailers rely on a margin above the wholesale price of fuel, gas stations at grocery stores can offer lower prices as they have the ability to makeup for the decreased revenue with lower prices. When asked about the Safeway gas station in Fort St. John, McTeague said that while Safeway in the past offered lower prices, he hasn’t seen the chain offering cheaper than average fuel since the company was purchased by Sobey’s in 2013.