Solar eclipse partially to blame for Metro Vancouver’s high gas prices

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VANCOUVER (NEWS 1130) – You may find it hard to believe, but this month’s solar eclipse is partially being blamed for gas prices in Metro Vancouver hovering above a $1.30 per litre.

According to Dan McTeague, a senior gas analyst at GasBuddy.com, demand is high because many star gazers south of the border are expected to travel long distances to the best viewing spots for the rare event on August 21st.

“Organizations involved with travel destinations have put out a lot of messages there and warned a number of gas stations to make sure that they have ample supply in anticipation of the great demand that we’re going to see –especially on the belt across Oregon and into other states.”

He says retailers have been taking a beating, while oil companies and refinery operators continue to do well, but customers in the Lower Mainland are still losing out.

“In other cities, intense competition is usually on the last 12 cents a litre which is the retail margin. Of course, taxes are substantially less than they are here. It pushes about 48/49 cents a litre.”

Meanwhile, an interesting trend is happening in Western Canada when it comes to gas prices. Gas stations are buying fuel for about the same price they’re selling it for.

McTeague, says the unusual situation has retailers taking an absolute beating.

“Gas stations are not making money selling gasoline. At this time last year, it was costing about six cents a litre less to buy their fuel and they were picking up, maybe, eight or nine cents to turn on their pumps.”

He adds market prices have gone up dramatically this year, compared to last year. “If you happen to be in the oil business or in the gasoline producing business as a refinery, you’re doing fairly well. Your market prices have gone up dramatically this year, compared to last year. Motorists too shouldn’t feel so bad.”

The price of fuel in some parts of Canada has stayed nearly same for over a year, hovering near the 90-cent mark.

“While these prices have skyrocketed, if we go to Saskatchewan, Regina, Saskatoon… you’re pretty much paying what you were paying at this time last year. It’s been a double bonus for everyone.”

He says it’s hard to predict if this trend will continue in Western Canada.

Don’t forget drivers on the Lower Mainland pay some of the highest gas taxes in the country. According to Gas Buddy, prices in BC are several cents higher than other provinces.

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