Penticton is currently enjoying the lowest gasoline prices in B.C., with multiple stations selling at or below cost.
As of Monday afternoon, the Super Save Gas on Green Mountain Road was at 128.9 a litre, tied with the Kaleden Petro-Canada and a station in Elko for the cheapest in the province. Most other Penticton stations are just a cent or two behind.
Senior petroleum analyst Dan McTeague of gasbuddy.com says retailers are currently paying about 1.30 a litre after taxes to purchase gasoline at wholesale.
“You are looking at one or two players that have decided to duke it out,” McTeague said, explaining the Super Save Gas on the Penticton Indian Band reserve has a slight tax advantage allowing it to sell for less.
McTeague said Penticton gas stations appear to be having “a little bit of a fight.”
“In these circumstances, in which it's not a massive market, the wholesalers to those gas stations are saying, ‘look just match everyone else’s price so you don’t lose market share.’”
Gasoline has been routinely selling for 10-15 cents a litre less in Penticton than Kelowna for the past three weeks.
Elsewhere in the Okanagan and in Kamloops, gas is selling for roughly 1.40 per litre, which McTeague said includes a more typical retail margin.
- Colin Dacre, Castanet News
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