Currently, Revelstoke has one of the highest gas prices in province.
As of March 24, most gas stations in Revelstoke are selling at $1.17 per litre. According to GasBuddy, the world’s largest community-based fuel app, the average price for gas in B.C. is $1.05, which is the highest of any province in Canada.
By comparison, gas is $0.77 in Prince George, $0.99 in Vernon, $1.09 in Golden. $0.59 in Edmonton and $0.99 in Vancouver.
Even Northwest Territories is cheaper at an average price of $1.02. Gas is more expensive in Powell River at $1.24.
The province with the lowest average price is Nova Scotia at $0.72 per litre.
GasBuddy said gasoline prices are plummeting nationally by almost 13 cents in the past week alone according to their data compiled from more than 11 million price reports from 150,000 gas stations across Canada.
The gas price tumble is due to the economic impacts from COVID-19.
According to a report by the Conference Board of Canada, they forecast Canada’s GDP could fall 1.1 per cent in 2020., based on physical distancing and travel bans in effect until the end of August.
The Conference Board estimates Canada could shed 330,000 jobs in the next few months, with unemployment climbing to 7.7 per cent. They furthered that the resource sector, tourism and household services will be the hardest hit, resulting in double-digit declines.
Last year, gas in the province peaked in some areas at around $1.70 per litre, prompting Premier John Horgan to order an inquiry.
This week, the price of West Texas Intermediate (WTI), the benchmark for a barrel of oil in North America, fell below $25 per barrel.
MLA for Columbia River-Revelstoke Doug Clovechok said it’s “insane” that gas prices are still relatively high in Revelstoke.
“It’s truly a mystery.”
Clovechok said he and MP Rob Morrison are looking into reasons for the high pricing.
The MLA said he has heard from colleagues that it could be due to price wars or inventory, i.e. the prices in Revelstoke has not dropped yet because the gas stations need to sell their product depending on what price they bought it, which means when they buy gas again at a lower price and those cost savings will be passed onto the consumer.
“But I’m not sure if that’s the case,” said Clovechok.
Some gas stations in Revelstoke are resupplied with fuel from Kamloops off the Trans Mountain Pipeline.
It’s the only pipeline in North America that carries both refined petroleum, such as gasoline or diesel, light/heavy crude and processed bitumen. The process is known as “batching”, with one product following after another.
The products can mix, but this mixing, known as product interface is minimized by using specific sequencing.
When Black Press reached out to a local gas station, they were told that prices should drop soon.