Gas prices in Salmon Arm have dipped this week, with some stations posting 109.9 cents a litre — well below prices in nearby communities where motorists are paying 10 to 20 cents more.
Dan McTeague, president of Canadians for Affordable Energy, said transport costs and customer traffic are the main factors in pump prices.
“Salmon Arm is 1.5 hours away from the terminal in Kamloops, Revelstoke is almost three hours away and the cost may be a little higher,” McTeague said.
He added that it costs gas bars a certain amount to replace the gas they sell.
“They also charge a retail margin to cover loyal, credit card honouring fees as well as the cost to operate their stores,” he said. “Gas bars often lose some of their retail margin to respond to local competition, giving a skewed basis for comparisons between differing cities in the same region.”
According to GasBuddy, the different seasons changes affect gasoline blends and prices.
Summer gasoline is a blend with lower Reid vapour pressure, or lower volatility, that also vary by octane level. GasBuddy said this higher-grade fuel can cause high gas prices.
Winter gasoline blends have a higher Reid vapour pressure, which means it is less expensive to produce that results in lower gas prices from the fall months going into the spring months.
Natural Recourses Canada also listed different factors that go into determining gas prices, including municipal and provincial taxes. Competition, consumer choice, the amount of fuel sold and location of stations also play a role.
So, when it’s time to fill up, consider doing some research on which cities have lower gas prices or check daily which stations are selling cheaper gas.
