As wholesale costs dropped 20 cents from a peak in mid-June, Calgary retail costs have remained caught above 190 cents per litre
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Gasoline value analyst Dan McTeague says retailers in Calgary are “fleecing” Calgary drivers as they proceed to cost costs north of 190 cents per litre.
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Gasbuddy.com pegged Calgary’s common retail value at 190.5 cents per litre as of Saturday. A handful of shops had been providing common gas at 187.9 cents per litre within the afternoon.
“That is fairly the fleecing,” stated McTeague. “It’s not acceptable. And fuel stations needs to be held to account. Those that are charging 191.9 (cents per litre) must be accountable for the truth that they’re charging a 32 cent-plus retail margin.”
He stated retailers have to cost 10 to 12 cents above value to activate the lights and pay employees, whereas nonetheless making a revenue, however he discovered most had been charging greater than double that.
McTeague did the mathematics based mostly on a rack value of 130.6 cents per litre, which was listed on each Petro-Canada and Shell’s web sites for Saturday.
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He stated retailers then add 11.05 cents for the carbon tax, and 10 cents for the federal excise tax, plus 5 per cent GST. That will get retailers in Calgary a base value of 159 cents per litre, based mostly on Saturday’s rack value.
He urged retail prices needs to be nearer to 169 or 171 cents per litre, based mostly on that base value.
“That is pure and easy fuel bars making the most of the general public to the tune of at the least 15 or 20 cents a litre,” stated McTeague.
He’s been watching the rack value drop for weeks, with little motion on costs in western Canada. The rack value for fuel peaked at 151.8 cents per litre in Calgary on June 10 and has trended downward since that date. Gasoline costs have remained at or above 190.9 since June 8.
“Two weeks in the past, I tweeted that by subsequent Monday — final week — it is best to see a lower of about 10 cents a litre,” stated McTeague. “Nothing occurred.”
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College of Calgary economist Trevor Tombe stated he doesn’t assume costs are too extreme based mostly on the present information. He stated retail margins leap up and down frequently, and the most recent swing is inside the bounds of previous swings.
“Over the previous six months, the two-week change in retail margins exceeded 9 cents per litre 15 per cent of the time after which falls. It’s a unstable measure and doesn’t indicate an absence of competitors,” stated Tombe.
McTeague stated he isn’t positive present costs have something to do with the province briefly lifting its 13-cent-per-litre fuel tax on April 1.
“I’m undecided that is linked in any respect to the fuel tax lower as a result of, for the previous few months, they (gasoline retailers) have behaved fairly properly,” he stated.
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Gasoline costs declined in Alberta when the province minimize the tax, however different market stress have since pushed the value up even larger.
Postmedia reached out to the province for a response to present costs however didn’t obtain a response.
Talking in late March, Premier Jason Kenney stated the province can be watching retailers “like a hawk” after Alberta dropped its tax.
“We despatched a transparent message to fuel retailers that we gained’t settle for any video games being performed with this,” stated the premier days earlier than the tax was lifted. “In the event that they don’t move on these tax financial savings, in the event that they attempt to pocket a portion of that, we can be ready to resort to utilizing authorized instruments to guard customers and we’re open to doubtlessly bringing in regulatory energy to compel retailers to move on that financial savings.”
brthomas@postmedia.com
Twitter: @brodie_thomas
