Filling up your vehicle within the Regional District of Bulkley-Nechako (RDBN) will get a little more expensive in the next few days.
In places like Smithers, prices rose to $1.20 a litre – 10 cent jump in the past few days.
However, Dan McTeague who is a Senior Petroleum analyst with Gasbuddy.com doesn’t expect the increase to last for too long.
“I think you are going to see prices going down three to four cents a litre over the next couple of weeks as we head to November. Perhaps, we could see a return to prices pretty much where they were over the next several weeks and possibly into Christmas.”
Some gas stations were struggling with the recent pricing, buying it for a certain price and in some cases and selling at an even cheaper rate giving themselves not much room for profit.
That’s an unsustainable formula McTeague says.
“It’s not likely that many people are going to be able to survive on that unless you’re cross-subsidising by your suppliers or you are a big-box store and you’re using gasoline as a loss-leader.”
“Since October 1st, wholesale prices for gasoline have gone up about eight cents per litre and that pretty much took away all the retail margins, that’s really the way the industry operates. If your a gas station, you’re on your own with no support and you can’t honour a credit card or pay for electricity to turn on your pumps and pay the $1.04 unless prices are a $1.10 to $1.15 a litre, anything below that, you will lose money and go out of business.”
He expects prices to drop again in the next few days.
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