Explaining the Volatile Gas Prices in Woodstock

Wednesday, 7 February 2018 12:37

Consumers are enjoying cheaper gas prices in Woodstock these days thanks to a new station on Norwich Ave.

WOODSTOCK - Consumers are enjoying a tiny break at the pumps in Woodstock these days.

Gas prices have been lower in Woodstock then in other parts of region thanks to the new Pioneer station on Norwich Ave. Senior Petroleum Analyst with Gas Buddy dot com Dan McTeague says this would also explain some of the volatility we have witnessed lately.

"As we all know their is no competition among refiners in Canada, thanks to a competition bureau that seems more interested on finding price fixing on bread because someone has reported. The fact is over the years our competition act has permitted a high degree of concentration that wouldn't be tolerated by the way in the United States among refiners so that they have virtually the identical wholesale price publicly posted. On top of that though the only semblance of competition is that last 12 cents a litre."

Last Friday gas stations on Norwich Ave went from a 1 dollar 13 a litre to a 1 dollar 27 in an hour, trying to recoup some of their losses. McTeague says that is the only way the gas stations can recoup their losses.

"Most gas stations cannot afford to lose so they will drop it in the morning or drop it in the evening and then restore it the next morning. That is something I refer to as gas bar shenanigans, on twitter at my @gasbuddydan site I actually refer to it has #gasbarshenanigans and that is really retailers trying to beat each other up in order to maintain market share but they do so at the risk of losing their business."

McTeague says Parkland owns the Pioneer station and they are known for doing this type of thing when they first arrive in a community in order to get the market share.

"You can't run a gasoline station at a loss unless you have a rich uncle or a refinery or in this gas, Parkland is willing to allow it's gas station to operate at or below cost and make sure they don't lose money in the process. There is no doubt a deliberate attempt to try to make and create a market share, it's good news for consumers but underlining it is a really false sense of competition because this type of behaviour wouldn't happen in the United States where they actually have true anti trust legislation."

The cheapest gas in the city right now is at the Pioneer at a 1.16 a litre and the highest is at the Shell on Devonshire at a 1.23 a litre.

You can always find the cheapest gas online at gasbuddy.com.