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Gas prices near record-breaking territory again; analyst wonders if it's about the refining margin

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Summary

'Somethings going on there,' says analyst about gas prices, as they flirt with record-breaking levels again

METRO VANCOUVER (NEWS 1130) – With the cost of a litre of fuel nearing record levels again, there’s a call for more transparency about how petroleum companies come up with their pricing.

An industry insider is hinting that you may be getting gouged everytime you gas up.

Roger McKnight with En-Pro International says it comes down to the refining margin, which is the difference between what refineries pay for crude and then what they sell it for.

McKnight says the local margin is up 30 per cent compared to this time last year.

“Something’s going on there. I think maybe the refining industry is taking advantage of a situation, be it the political one or be it the pipeline one, or whatever.”

McKnight we’re paying about 44 cents a litre, which is ten cents more than last year and ten cents more than people currently do in places like Ontario — and he’s not sure why.

He believes petroleum companies should be forced to be more public with their practices like they are in the US so we have a better idea of why we’re paying such high prices.

“Somebody’s got to squawk, saying ‘Do you know what the problem is, first of all? Can you tell us how to solve it? Can you give us some statistical background to support the arguments?'”

He says consumer would be much less likely to call it price gouging if they knew more about how petroleum companies set their prices.