Prowling the Pumps – August 19, 2008

On the case, lurking at service stations across the country to find the lowest and highest gasoline prices in Canada.

Average across Canada

Down another 1.5¢ per litre this week. That makes two weeks in row. Average prices fell in five provinces as well as in the Yukon and Northwest Territories. They rose in Quebec, Nova Scotia and Newfoundland and Labrador and remained unchanged in British Columbia and Saskatchewan. And where they did change, the amount was slight, up or down.

Least Expensive Gasoline in Canada (per litre)

Last week we asked the Question “Will Ontario dominate the low-cost five?” And the answer this week is a resounding yes – shut every other province out completely. But the problems with Petro-Canada’s Edmonton refinery have apparently had little effect on prices in Alberta, which actually fell half a cent per litre.

Most Expensive Gasoline in Canada (per litre)

Victoria and Fort St. John, BC crept back into the pricey five, but Yellowknife and Labrador City retained their stranglehold on the most expensive gasoline in Canada.

Oil prices reversed their downward trend, with West Texas Intermediate moving to $114.53 US per barrel. That’s a gain of $1.43 per barrel over last week, due, the pundits say, to a weakening US dollar and low gasoline stocks. But, before we start bracing ourselves for another precipitous climb in gasoline prices, let’s remember that there are roughly 159 litres in a barrel of oil, meaning the impact of a $1.43 per barrel rise in oil translates to less than a cent per litre of gasoline.

Are oil markets becoming less volatile? The Pump Prowler thinks that earlier in the year, a weakening US dollar and Tropical Storm Faye would have pushed oil prices up far more than $1.43. Maybe the speculators are still on vacation and the market is reacting realistically to true market forces.
We’ll see what happens next week.