Edmonton has cheapest gas prices in Canada
Edmonton gets gas at a wholesale rate because of nearby refineries, petroleum analyst says
Edmonton has the cheapest gas prices in Canada right now, and one petroleum analyst says there are several reasons why costs are slightly higher in Calgary.
First off, Edmonton drivers catch a break on the wholesale price of gas because the city is home to three refineries, says Dan McTeague with GasBuddy.com.
The city also has a hard-charging, competitive market in which big-box stores run their own gasoline stations.
"Well, Edmonton's market is super competitive on the retail side," McTeague told CBC News.
"I would categorize it as almost cutthroat. It has a lot to do with vigorous competitors in the region. You have big-box stores and large dominant players; all have gasoline stations there.
"Many outlets … will offer gasoline as a lost leader there to attract people to come in to buy other products."
Gas prices should continue to fall until Easter and then level off, McTeague says.
"It could change on new production numbers coming out of the United States or around the world, signalling that there are more and more producers exiting the market, and as result not producing as much oil."
Driver Daniel Burns likes the lower gas prices.
"I love it. Well, when you look at that truck right there it takes a lot of gas … a 130-litre tank. It's good."
But not everyone feels the same way.
Mohammed Ghafari, who works construction, hopes prices will jump. He is now out of a job for the first time in a decade.
"This price is OK for everybody driving, but no good for the economy. [With] gas prices up, everybody has a job, you know."
As of Wednesday in Edmonton, gas is as low as 56.9 cents a litre, according to GasBuddy.com. In Calgary, the lowest price was 61.9 cents a litre.