What a difference a year makes in Canada’s oil and gas sector. A year ago, oil was up ten dollars a barrel while in western Canada, fuel is selling below cost.
Dan McTeague is the senior gas analyst at Gas Buddy DOT COM. He says it’s so unusual to see gas prices this low, while oil is this high.
McTeague says however, retailers are taking an absolute beating.
“Gas stations are buying fuel for about the same price they’re selling it for, McTeague said. “They’re not making money selling gasoline. This time last year, it cost them about 6-cents a lite less to buy their fuel. And they were picking up maybe 8 or 9-cents to turn on their pumps”
He says unfortunately, retailers are not making money selling gasoline adding this time last year, it cost them about 6-cents a lite less to buy their fuel.
“And if you happen to be in the oil business, or in the gasoline-producing business as a refiner, you’re doing faily well,” McTeague said. “Your market prices have gone up dramtically this year, compared to last year. But motorists too shouldn’t feel too bad.”
That’s because the price of gas has hovered near the 90-cent mark for over a year.
He says it’s hard to predict if this trend will continue in western Canada.
“While these prices have skyrocketed, if we go here in Saskatchewan — in Regina or Saskatoon — with prices hovering around 90-cents a litre,” said McTeague. “You’re pretty much paying what you paid this time last year. So it’s been sort of a double-bonus for everyone.”