Prowling the Pumps – October 14, 2008

Canadian Gasoline Prices

Average across Canada

An even bigger drop this week – 5.9¢ per litre to $1.069 per litre. Our hypothetical 80-litre tank was $4.726 less expensive to fill this week than last.

Gasoline prices slid everywhere except in Prince Edward Island, where they stayed the same as last week. The steepest drop, 9.9¢ per litre occurred in British Columbia.

Overall, the average gasoline price in Canada has dropped 31.4¢ per litre since its all-time high of $1.383 per litre during the week of July 15. And this means that our hypothetical 80-litre tank now costs $25.12 per litre less than it did only three months ago. The reasons – declining demand for gasoline and cheap oil.

Least Expensive Gasoline in Canada (per litre)

This week makes the first since we began prowling the pumps that there is one, let alone two, cities where the average price of gasoline is less than a buck. Of course they’re Kingston and Ottawa. But there’s hope for the rest of us yet.

Most Expensive Gasoline in Canada (per litre)

Despite falling 20.7ȼ, since its peak, the priciest of the pricey five, at $1.369 per litre is still expensive. Think of it this way: despite dropping 20.7ȼ, it’s still higher than the least expensive gasoline ever rose since we started tracking gas prices.

It doesn’t look to us that the bail-out package has brought any stability to the markets. This past week, commodities, specifically oil, were hit hard, with WTI dropping to below $80.00 US per barrel for the first time since last year. Unless the markets reverse their current downward trend, the price of gasoline is headed down too.

We’ll see what happens next week.

Prowling the Pumps – October 8, 2008

Prowling the Pumps – October 8, 2008

Canadian Gasoline Prices

Average across Canada

Sometimes gradually, sometimes steeply, the decline continues. The average price of gasoline in Canada dropped for the fourth week in a row, this time by 5.2¢ per litre to $1.128 per litre. Our hypothetical 80-litre tank was $4.16 less expensive to fill this week than last.

Gasoline prices slid everywhere except in Newfoundland and Labrador, where they rose 0.4¢ per litre. The steepest drop, 11.2¢ per litre occurred in the Northwest Territories.

Overall, the average gasoline price in Canada has dropped 25.5¢ per litre since its all-time high of $1.383 per litre during the week of July 15. And this means that our hypothetical 80-litre tank now costs $20.40 less than it did only one week shy of three months ago. As the summer driving season comes to a close, the demand for gasoline subsides and with it, the constrain on supply. Consequently, prices decline.

Least Expensive Gasoline in Canada (per litre)

Same four cities in the low-cost five as last week, just some changes in positioning.

Most Expensive Gasoline in Canada (per litre)

As far as the pricey five go, it’s really the pricey six, with Corner Brook tying Whitehorse for fifth place. Otherwise, same players, different order.

Again, the big impact on gasoline prices, besides the end of the summer driving season, is the impact the global financial crisis is having on the price of oil. Last we though things would stabilize once the bail-out bill was passed, however, that seemed to lead to even more uncertainty. Will it have the desired effect? Is it enough? How long will it take? And as we’ve all heard a million times over the past three weeks, the market hates uncertainty. So investors sell off and the first things to lose their shine are commodities. Consequently, the price of oil has dropped below $90 US per barrel.
Our big question last week as “What will happen to gasoline prices once the bill is passed?”

Well, they dropped.

We’ll see what happens next week.

Pricing by Province

	Last Week	This Week	Change
BC	1.315	1.268	-0.047
AB	1.198	1.158	-0.040
SK	1.262	1.240	-0.022
MB	1.232	1.196	-0.036
ON	1.164	1.119	-0.045
QC	1.258	1.191	-0.067
NB	1.203	1.191	-0.012
PE	1.223	1.166	-0.057
NS	1.236	1.204	-0.032
NL	1.331	1.335	0.004
YT	1.399	1.309	-0.090
NT	1.534	1.422	-0.112

Prowling the Pumps – September 30, 2008

Canadian Gasoline Prices

Average across Canada

The average price of gasoline in Canada dropped for the third week in a row, this time by only 2.5¢ per litre. Our hypothetical 80-litre tank was exactly $2.00 less expensive to fill this week than last. Gasoline prices slid everywhere except in the Yukon and Manitoba, both of which stayed at the same price as last week.

Of those provinces that did see a drop in prices, New Brunswick and Prince Edward Island led the way with decreases of 5.5¢ and 5.3¢ respectively. Ontario ranked third with a 4.7¢ decline.

Overall, the average gasoline price in Canada has dropped 20.3¢ per litre since its all-time high of $1,383 per litre during the week of July 15. And this means that our hypothetical 80-litre tank costs $16.24 less than it did two and a half months ago.

Least Expensive Gasoline in Canada (per litre)

This week it all makes sense. The province with the lowest average prices, Ontario, also has the five least expensive cities in which to buy gasoline.

Most Expensive Gasoline in Canada (per litre)

As far as the pricey five go, same players as last week, different order.
The gap between the least and most expensive is a whopping 46.1¢ per litre. The reasons – distance from refineries, population size and amount of gasoline sold. Taxes aren’t a factor because Yellowknife’s taxes are 1.8¢ per litre less than Ottawa’s.

The big story as far as oil prices are concerned is still the U.S. (and by U.S. the Prowler means global) financial crisis. Every new development sparks a price change. All parties have agreed to the bailout bill. The House of Representatives defeats the bill. President Bush stresses the importance of passing the bill. Senate leaders promise it will pass in the Senate. Obama sneezes. Just after our last report, WTI was trading at $106.88 US per barrel, rose to $115.46 per barrel, dropped to $96.37 per barrel and is sitting around $100 at the time of writing. However, despite these gyrations, the price of gasoline continues to fall. The big question now – What will happen to gasoline prices once the bill is passed?

We’ll see what happens next week.

Pricing by Province

	$/litre	Last Week	This Week	Change
BC	1.333	1.315	-0.018
AB	1.199	1.198	-0.001
SK	1.279	1.262	-0.017
MB	1.232	1.232	0.000
ON	1.211	1.164	-0.047
QC	1.273	1.258	-0.015
NB	1.258	1.203	-0.055
PE	1.276	1.223	-0.053
NS	1.263	1.236	-0.027
NL	1.400	1.331	-0.069
YT	1.399	1.399	0.000
NT	1.567	1.534	-0.033

Prowling the Pumps – September 24, 2008

Canadian Gasoline Prices

Average across Canada

The average price of gasoline in Canada dropped a remarkable 15.5¢ this week. Our hypothetical 80-litre tank was $12.40 less expensive to fill this week than last. Gasoline prices slid everywhere except in the Yukon and Northwest Territories, both of which stayed at the same price as last week.

Although hurricane activity in the Gulf of Mexico has abated and actual hurricanes are not a problem this week, some Gulf coast refineries are still out of commission. And only two-thirds of Gulf of Mexico oil production has been restored. This in itself should have pushed oil and gasoline prices higher, but the U.S. financial crisis seems to have had an overall dampening effect on prices.

Least Expensive Gasoline in Canada (per litre)

Despite Alberta having the lowest average gasoline prices, the five least expensive cities in which to buy gasoline are all in Ontario. And Kingston reappears after a one-week absence.

Most Expensive Gasoline in Canada (per litre)

Pretty much the same story as last week for the pricey five. Whitehorse back in, Victoria back out and a bit of jockeying around for the other four.

The financial crisis in the US is causing a lot of volatility in the global oil markets. WTI prices slid as low as $91.15 US per barrel last Wednesday, then rocketed $16.37 US per barrel to close at $120.92, after flirting with $130.00 mid-session. Although part of this rise was due to settling of September futures prior to October becoming the front-end month, a weakening U.S. dollar did put upward pressure on crude prices. Since Monday, oil has remained above $100 US per barrel.

As ever, we’ll see what happens next week.

Pricing by Province

	$/litre	Last Week	This Week	Change
BC	1.475	1.333	-0.142
AB	1.352	1.199 -0.153
SK	1.449	1.279	-0.170
MB	1.409	1.232	-0.177
ON	1.399	1.211	-0.188
QC	1.431	1.273 -0.158
NB	1.406	1.258	-0.148
PE	1.380	1.276	-0.104
NS	1.442	1.263	-0.179
NL	1.525	1.400	-0.125
YT	1.399	1.399	0.000
NT	1.567	1.567	0.000

Prowling the Pumps – September 16, 2008

Canadian Gasoline Prices

Average across Canada

The average price of gasoline in Canada rose 7.7¢ this week. Our hypothetical 80-litre tank was $6.16 more expensive to fill this week than last. Gasoline prices rose everywhere except in the Yukon.

Here’s the situation. Hurricane Ike gained strength as it tracked across the Gulf of Mexico, but never reached higher than Category 2. However, its immense size and the storm surge it pushed caused oil companies to shut down production platforms in the Gulf and refineries along the Gulf Coast. This action seemed to prompt a significant increase in the price of gasoline all across North America. However, platforms and refineries were largely undamaged, and restart operations began soon after the storm passed.

Least Expensive Gasoline in Canada (per litre)

For the first time since June 24, Kingston is not the least expensive city in which to buy gas. In fact, for the first time since we began prowling the pumps, Kingston doesn’t even make it into the low-cost five. Ottawa now has the distinction of being the city with the cheapest gas. Must be the election.

Most Expensive Gasoline in Canada (per litre)

Pretty much the same story as last week for the pricey five. Whitehorse out, Victoria in and a bit of jockeying around for the other four.

A lot of things influencing the price oil last week – Hurricane Ike, American investment bank meltdowns, continued rebel attacks on oil facilities in Nigeria – but the main stimulus seems to be a potential world-wide recession. Consequently, the WTI oil price slid to $91.42 US per barrel on September 16, its lowest since early February 2008. Gasoline, on the other hand, seem to be headed in the opposite direction…or is it?.

As ever, we’ll see what happens next week.

Praying at the pumps

Gasoline prices may rise and fall, but what remains constant is the desire, in the face of now-permanent triple-digit prices, to fall to your knees in frustration. But if most gasoline consumers are bowing down in defeat, at least one American group has a slightly different take on finding themselves prostrated by gas prices: prayer.

Called, simply enough, Pray at the Pump, the group of 50 Evangelical Christians believe, as their leader, Rocky Twyman, does, that prayer is literally the answer to all problems. Sporting a signature purple shirt, Twyman and his group meet regularly in front of gas stations, even providing a modified version of the iconic civil rights anthem “We Shall Overcome” featuring the new verse “”We’ll have lower gas prices.”

According to the National Post article linked above, the group began at a Washington, D. C. where, after hearing the other soup kitchen volunteers complaining about the cost of gas, Mr. Twyman led them across the street to a Shell station to pray. The group’s visits have included stations around the United States, and they’ve even taken their crusade online with a petition.

So far their public call to “Pray Down the High Gas Prices” has only attracted 54 signatures agreeing that “Negotiations with rich Arabs have failed to end the high gas prices in America,” but the group has already attracted considerable attention online and even from comedian Jay Leno.

In fact, the famous late night host is now a subject of protest for the group after he quipped: “Hey, have you heard about this group called Prayer at the Pump? They’re a prayer group that sprang up, and they go to gas stations and they hold hands and they pray for lower gas prices. Otherwise known as the Bush energy plan.”

Prowling the Pumps – September 9, 2008

Canadian Gasoline Prices

Average across Canada

The average price of gasoline in Canada decreased 3.2¢ this week. Our hypothetical 80-litre tank was $2.56 less expensive to fill this week than last. Gasoline prices fell in five provinces, but rose in Saskatchewan, New Brunswick and the Yukon. They remained the same in Prince Edward Island, Nova Scotia, Newfoundland and Labrador and the Northwest Territories.

It’s all about the weather. Hurricane Gustav missed refinery row on the Texas/Louisiana Gulf Coast and Hanna missed the Gulf completely. Ike crossed Cuba into the Gulf, but prices remained low, pending firmer forecasts of that storm’s path.

Least Expensive Gasoline in Canada (per litre)

New Brunswick exits the low-cost five and Alberta returns, but Ontario maintains its dominance with four cities and, of course, Kingston remains the best place in Canada to find cheap gasoline..

Most Expensive Gasoline in Canada (per litre)

Last week, it was Vancouver in, Gander out. This week it’s just the opposite, Vancouver out, Gander in. Pretty much the same story as last week for the pricey five. Substitute Vancouver for Gander.

A number of factors are impacting oil prices. Hurricane Ike and the path it will take across the Gulf of Mexico adds uncertainty to the equation and possibly an oil price hike. The U.S. government bail-out of Fannie Mae and Freddie Mac, entities which own or guarantee more than half of the U.S. mortgage market, strengthened the U.S. dollar causing commodity prices to fall. OPEC, meeting in Vienna this week, was not expected to make any changes in its production levels; however it announced a half-million barrel per day production cut in an effort to support an oil price around the $100 US per barrel mark. Oil prices rose slightly on this news, but settled back to about $102 US. Overall, oil prices are down about $45 per barrel from their record high in July.

We’ll see what happens next week.

Prowling the Pumps – September 2, 2008

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

Average across Canada

Another rise, but it can be explained away. Really. The average price of gasoline in Canada climbed 5.6¢ this week. Our hypothetical 80-litre tank was $4.48 more expensive to fill this week than last. Gasoline prices rose in seven provinces, but dropped in New Brunswick, Newfoundland and Labrador, the Yukon, the Northwest Territories. They remained the same in Prince Edward Island. However, there is a trend here. Newfoundland and Labrador, the Yukon and the Northwest Territories lag behind the other provinces when gasoline prices are dropping, so one would expect them lag when prices are rising as well. It has to do with extended supply lines, storage capability and bulk purchase. New Brunswick did well (more on this later) because it is home to Canada’s largest refinery.

So. The explanation for rising gasoline prices. Tropical Storm Gustav was heading straight through the Gulf of Mexico to refinery row on the Texas/Louisiana coast, gathering strength as it crossed the warm gulf waters. Energy traders expected Gustav to become a hurricane and severely damage not only refineries but offshore production platforms. Consequently, oil and gasoline prices climbed. Although Gustav was still a devastating event, it spared the refineries and production platforms. Consequently, prices dropped, but did so after the weekly retail fuel price survey was conducted.

Least Expensive Gasoline in Canada (per litre)

Alberta is bounced out of the low-cost five, not by Ontario, but by New Brunswick. Not surprising seeing as the Saint John refinery is the largest in Canada. And very opportune timing-wise. Visitors to New Brunswick can take advantage of the cheap gasoline while they’re taking in the spectacular fall colours.

Most Expensive Gasoline in Canada (per litre)

Pretty much the same story as last week for the pricey five. Substitute Vancouver for Gander.

Following the demise of Gustav, West Texas Oil prices dropped below $110 US per barrel for the first time in recent memory. April 2007 to be precise. We’re probably in for a roller coaster ride at least until hurricane season is over in another three months, especially with Hanna, Ike and Josephine warming up in the wings.
We’ll see what happens next week.

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.

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.

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