Gasoline prices are slowly dropping, but for multiple reasons — pipeline constraints, Alberta refinery prices, a volatile U.S. market, profits at the pump, and more — the cost is still higher than Red Deer motorists would care to pay.
On Wednesday, the average gas price in Red Deer was 115.9 cents a litre, about eight cents higher than the provincial average of 108.3, according to GasBuddy.
The cheapest pump prices in Alberta were at a Fas Gas outlet in Camrose and a Tempo station in Spruce Grove, both selling at 93.9.
Prices at pumps in Edmonton averaged 103.2 and 105.2 in Calgary.
Dan McTeague, senior petroleum analyst with GasBuddy, said the wholesale price in Edmonton is always cheaper compared to Calgary, and any difference between gas prices in Red Deer and Calgary are strictly the retail margin.
He suggested using the GasBuddy phone app to find the best local prices. Motorists in Gasoline Alley were lining up at Costco, which regularly has the cheapest price and was at 109.9 on Wednesday.
Leanne Purden, of Lacombe, called gasoline prices “outrageous” and said she hopes the price keeps dropping.
“I watch where it’s the cheapest, watching where my pennies are spent. When I’m working in Red Deer, this is my go-to place,” Purden said of Costco.
Heather Koturbash, of Blackfalds, said Costco is where she buys gas now that she works in Mackenzie Industrial Business Park.
Alistair Nicholson, of Blackfalds, said he has been buying gas from Costco since about 2001.
“As far as gas prices go, it can always go lower. However, we’re not as bad as Eastern Canada or the North. I just got out of Yellowknife a couple days ago and they were at $1.68 a litre,” Nicholson said.
Prices have dropped an average of five cents a litre in Red Deer over the past month and McTeague said they should continue to fall, unless something happens internationally.
“If OPEC and Russia decide to collaborate and cut back on production, then all bets are off. We’ll see prices moving back up in time for Christmas.”
The need for more pipeline infrastructure also hampers the long-term outlook, he said.
“Bottom line, as long as oil remains significantly depressed for the reasons of infrastructure constraints, we’re all going to continue to see prices rise, at the same time paying more for pretty much everything, including fuel,” McTeague said.
szielinski@reddeeradvocate.com
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