WATCH: Dan McTeague from GasBuddy.com says competition from Costco is lowering gas prices in Greater Victoria.
Competition from Costco is lowering gas prices in Greater Victoria, according to Dan McTeague, senior petroleum analyst with GasBuddy.com.
Monday night and into Tuesday morning, many gas stations were showing prices of 125.9 cents per litre.
By Tuesday afternoon, though, many stations had increased their prices to 135.9/L and others at 139.9/L.
Costco remained at 123.9/L.
McTeague says Costco has two advantages over many other gas stations. First, it can make up for lower gas prices with retail sales and membership fees, and second, it gets a five cent discount on the wholesale price.
“Costco is moving massive volumes through our refiners,” McTeague said. “And when you’re still using winter gasoline and you know that in three to four weeks, we’re shifting back to summer gasoline… you want to liquidate that inventory.”
Stacey Fitzsimmons, associate professor of business at the University of Victoria, says the discrepancy in prices is unlikely to change consumer behaviour.
“We are less likely to shop around for something that we buy habitually,” Fitzsimmons said. “Maybe you always hit the same gas station on the way home from work. Compared to, say, something that you buy like a car, that you only buy once every few years.”
McTeague says prices will likely stay lower for the foreseeable future. However, prices are set to rise again this summer.
Calvin To
