Many drivers in southern Alberta have come to expect, and possibly accept, wild jumps and slow slides in the price of fuel but some local gas stations have begun bumping their prices up ahead of the morning commute and dropping the price throughout the day.
A number of viewers have reached out to CTV Calgary complaining that the price of regular grade gasoline is in the 109.9 cents to 112.9 cents per litre range in the morning. By the late afternoon, the price has returned to nearly 96.9 cents per litre.
Keith Ball says, in an average week, he drives approximately 500 kilometres commuting to and from work and he keeps close tabs on fuel prices.
“In the last two to three weeks, I’ve noticed prices going up and down on a daily basis,” said Ball. “My concern is it’s price gouging.”
Ball says the wild swings in price could jeopardize brand loyalty or support for a neighbourhood station. He attempted to contact Shell Canada for an explanation but his efforts were unsuccessful.
“I couldn’t get through their customer service line,” said Ball. “Apparently their lines are experiencing heavy traffic.”
“I would just like companies to be fair with consumers.”
Dan McTeague of GasBuddy says yo-yo pricing is the result of small, independent retailers attempting to compete with the likes of the lower prices offered at Costco and the Real Canadian Superstore.
As of Thursday afternoon, a gas station owner would need to price regular grade glass at 96.9 cents per litre in order to break even. The lack of a profit margin on fuel is potentially negated by the sale of items within the convenience store but, if sales are slow, the price of gas may be temporarily increased to cover overhead. The fluctuations in the price at the pump at one independent retailer will likely warrant a similar reaction from local competition but the matching of prices is not illegal as long as retailers are not conspiring to fix prices.
“What you’re seeing here is a classic competition among retailers – a gas war,” explained McTeague. “It’s very frustrating for motorists.”
McTeague says consumers are at the mercy of gas price fluctuations and recommends filling your tank whenever you encounter a favourable price.
With files from CTV’s Kathy Le
