Prowling the Pumps – August 26, 2008

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

Average across Canada

Our two-week decline ends with a whopping 0.2¢ per litre increase despite average prices dropping (very slightly) in most jurisdictions. Worst case scenario is that this is the beginning of a reversal. The Pump Prowler wants to believe gasoline prices are still falling; this week’s increase is just a bump on the curve.

Least Expensive Gasoline in Canada (per litre)

The low-cost five weren’t as low cost as they were last week, but the increases were slight. Kingston maintains its unrelenting grip on the lowest gasoline prices in Canada, but Ontario cities no longer dominate the inexpensive few. Chicoutimi enters the low-cost five for the first time, despite some of the highest gasoline taxes in Canada. And Edmonton and Lloydminster are back.

Most Expensive Gasoline in Canada (per litre)

Same cities, same order. But, gasoline prices either dropped or remained the same in the pricey five. Hence the overall drop in gasoline prices.

Oil prices continued to rise, with West Texas Intermediate moving to $116.27 US per barrel from $114.53 last Tuesday. Between the Tuesdays, it rose as high as $121 because of tensions between Russia and the U.S. and the potential for Tropical Storm Faye to re-enter the Gulf of Mexico. That’s a climb of $3.17 over the last two weeks, and we can expect more as Tropical Storm Gustav continues to build as it tracks toward the Texas/Louisiana coast.

So last week the Pump Prowler mused that oil prices were becoming less volatile. Almost immediately they shot up about six bucks per barrel, then came right back down. So maybe there’s still a bit of volatility. At least prices came back down again.
We’ll see what happens next week.