Quote:
Originally Posted by STeeLy
I don't know what the original poster thinks... but I would expected gas to be cheaper in Alberta overall because of the refiners and rigs we have... With the transportation costs being less, I'd expect it to be cheaper. And before the sky rocketing of gas prices like 5 years ago... gas in Calgary was cheaper.
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OK thanks. So a few things:
Southern Ontario and Montreal have plenty of refineries
Refineries in Edmonton have not been performing well lately
Alberta oil is priced vs WTI
All montreal and maybe a third of S ontario crude is priced vs Brent.
Transport of crude to Montreal is much cheaper than you'd think, by vessel you'd be surprised how cheap it is.
Individual grades of crude go up and down vs WTI or Brent
So once in a while gasoline can be cheaper in say S Ontario or Quebec because grades that are run out east can be cheaper than the grades run in the west ... so input costs can be less. Further each market can have it's own supply / demand dynamics. Right now, the praries are very short gasoline and diesel because of local refining problems. So it is reasonable that once in a while gasoline is cheaper out east.