Reginans have seen a dramatic drop in the price of gas over the past few weeks.
Many stations are selling gas for 87 and a half cents a litre which is 20 cents cheaper than what it was earlier this month after a jump in prices due to Hurricanes Harvey and Irma.
Gasbuddy dot com’s Dan McTeague says there was a little over-reaction in the market after those events.
“It really wasn’t that great an impact,” McTeague says. “I think there was an initial reaction but that quickly came down, and I think that’s one of the reasons we’ve benefited from dramatically lower prices than what was at the pumps at the beginning of the month.”
McTeague says while getting a bargain now, it may not be that way for much longer.
“Certainly, Monday or Tuesday, we could be in line for a seven or eight cent a litre correction, which would see both retail margins restored. There are only two or three cents right now, it takes six or seven cents to run your station beginning as early as Monday, so be forewarned.”
McTeague says the impact on midwestern U-S refineries after Hurricanes Harvey and Irma was not as large as expected so prices which went up went back down with prices being actually closer to what they should be.
While many stations in Regina are at 87 and a half cents a litre, the Canadian average right now is just over a dollar 11 a litre.