Gas Prices Hit Six-Year Low

(Photo by Jenn Durfey via Flickr)

A senior petroleum analyst says it hasn’t been this cheap to fill up your tank in southwestern Ontario since 2010.

GasBuddy’s Dan McTeague says prices at the pump are averaging about $0.92/L this summer.

He says that’s good news for consumers, bad news for retailers.

“Consider it costs most gas stations about $0.91/L to buy the gasoline, it means that most retail stations aren’t making much money,” says McTeague.

“In fact, there can be an argument that if you use credit cards to buy your gasoline, they’re losing about a penny on every litre, every time you fill up.”

He says the trend is consistent across this part of the province, and that much of it has to do with competition.

While gas may waiver about a penny or two here or there, McTeague suggests prices below the dollar mark are here to stay.

“Reality is that we’re well past the halfway point in summer, which means that refineries are starting to think about converting from the more expensive summer-blended gasoline to winter gasoline,” he says.

“That may mean, overall, lower prices going forward – not higher.”

When compared to last summer, McTeague says we’re really getting a break at the pumps, as prices were about 14-cents a litre more expensive.

“And if you go back two years, it’s almost 30-cents [less this year], so we’re really saving a lot. Upwards of $10-$12 a full tank, every week – that’s what we use – over the period of the summer.”

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