Thursday, September 10, 2009

Nanaimo Gas Prices Highest On Island

Nanaimo Drivers Keep Getting
Hosed At The Pumps

It would seem that after last year's prices of $1.50 a litre everyone seems to not get too excited with the current gas prices. Despite the fact that crude prices are about 50% of what they were last summer.

Right now, Nanaimo drivers are paying the highest price for gasoline on the Island and have been from several weeks.

Why? I think the honest answer is because the oil companies are able to get away with it, it doesn't have anything to do with crude prices, refinery output etc. It simply boils down to the fact they are getting no push back from drivers, and as we know there is NO level of government that will EVER do anything about pump prices.

The following comparison shows the difference in the 'per gallon' price as well as the 'per liter' price. For those old timers among us the per gallon price is still something we can relate to. The lower per liter price makes the prices differences not that extreme but when you look at the per gallon price, clearly there is not much competition involved in pricing.

What other consumer product such as milk could have such a wide price difference without true market forces bringing them into line. Unfortunately there are NO competitive forces at work in the Nanaimo gas market as is witnessed by the identical prices you see all over town.

Nanaimo .......$5.00/gal. (109.9/l)
Campbell River $5.00/gal.
Tofino ........$4.95/gal. (108.9/l)
Victoria ......$4.78/gal. (105.1/l)
Comox ........ $4.72/gal. (103.9/l)
Ladysmith .... $4.72/gal. (103.9/l)
Duncan ........$4.54/gal. (99.9/l)

For those oldtimers among us, can you even imagine a gas station trying to sell gas for $5.00 per gallon when his competition is selling it for $4.54 a gallon? That is exactly what is happening now, and we continue to get gouged because we are unwilling to do anything about it.

Another way to look at the price difference depending on the size of your fuel tank a fill up could be costing the average Nanaimo driver as much as $10.00 more each time they fill their tank compared with the same prices in Duncan.

Obviously the stations in Duncan are making money at $4.54 a gallon, so what kind of a profit are the Nanaimo stations taking in at $5.00 a gallon?

Just after finishing this post I went to pick up a few things and surprise, surprise the gas companies obviously like hosing Nanaimo drivers as the price at both Esso and Petro Can are now at 113.9/l or $5.13/gal.


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