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Old 03-28-2017, 06:36 PM   #1
tvp2003
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Default Gas prices in Calgary

Can someone explain the wild fluctuation in gas prices over the past few months? It seems like it keeps jumping from 0.89 to $0.91 and >$1.00 with very little in between. Today was the worst -- it was $0.899 this morning and now it is $1.049 at the same place. What gives?

PS. You can still find some places at $0.89 (ie the Shell at 4th Street and Northmount Drive) but you better hurry!
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Old 03-28-2017, 06:38 PM   #2
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Still in the mid 80's in Airdrie, but it's supposed to jump 20 cents overnight. If anyones out and about, might as well top 'er off tonight
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Old 03-28-2017, 06:38 PM   #3
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I think theres refinery turnarounds coming up.
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Old 03-28-2017, 07:54 PM   #4
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I've been paying in the mid 80's at Costco.

Spring is the time of year where refineries get shut down for routine maintenance.
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Old 03-28-2017, 07:56 PM   #5
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Gas is going over a buck, I saw a bunch of stations that have already increased their pricing. The Petrocan by my house was still at 88 cents so I squealed my tires caused two accidents and filled up my tank.
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Old 03-28-2017, 08:10 PM   #6
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Lol, paying $1.29 for regular in Vancouver
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Old 03-28-2017, 08:28 PM   #7
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We filled up for around $0.89/litre this morning, then I noticed the stations near my work in the beltline were at $1.05/litre. Oddly enough the Husky by my house was still at $0.89/litre when I drove home after work today.

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Old 03-28-2017, 08:44 PM   #8
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Just went to Canadian Tire, noticed Superstore and Shell were still .85 and .88 everywhere else already changed to over a dollar

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Old 03-28-2017, 08:44 PM   #9
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I have the Gas Buddy app on my phone. There's an Esso on 14th Street and 26th Avenue SW that's consistently a good deal cheaper that the others around where I live.
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Old 03-28-2017, 09:15 PM   #10
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Carbon tax, duh!
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Old 03-28-2017, 09:47 PM   #11
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Quote:
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Carbon tax, duh!
Actually, since the tax came in, it seems to me like the price of gas has been yo-yoing worse then usual. Seems like there's at least one price change a week
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Old 03-28-2017, 09:50 PM   #12
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I just don't get how it takes one night to jump 20 cents and then two weeks to come back down.

It's obvious gas stations are selling their cheaper supply at a higher rate for a bit and then as soon as the supply they buy goes up they don't waste anytime and raise prices while still stocked with the cheaper gas they bought.
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Old 03-28-2017, 09:58 PM   #13
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The price of gasoline is such a scam. I understand that the price of oil varies, and therefore, the price of gas varies along with it. The part that pisses me off is that all the stations raise their prices within an hour of each other. It's not like they all got their truckload of gasoline on the same day, when oil was at $50. Some of them bought it on Thursday and it was $47, and others bought it on Tuesday when it was $53. So are the refiners all running these tabs where they posthumously adjust their price, based on new expenses? Of course they're not. It's collusion. Gas stations get away with blatant collusion. If Esso buys a new load of gas that costs more, they raise their price to match, and all the other stations raise their prices to match, regardless of what they paid for the gas that's already in their tanks. And we just pay it. Got no choice.


I know Oil and Gas is Alberta's prime industry, but as soon as someone comes out with an electric 4x4 pickup, I'll be the first one in line to buy it. Then I can get f'd by Enmax instead. After all, variety is the spice of life.

Edit* I also know that the Gas in Oil&Gas is natural gas, not gasoline, so don't bother schooling me on that.

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Old 03-28-2017, 10:21 PM   #14
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Are you willing to pay more for gas from a station that paid more for its gas? Because if your replacement barrel costs you more than the one you are currently selling you are in trouble and you can't make it up on the downside by charging more for your more expensive barrels.

You have to charge what it costs you to replace. So if the refineries raise their price the local station has to raise theirs to follow suit. If it were price fixed at the local level prices would never drop.

Is it price fixed at the refinery level? Maybe but it could just be that all companies have realized that competing on price will cost them all money (independently rather than colluding) so instead of competing on price they spend it on marketing.

Unless you can produce gasoline for dramatically less than your competition and supply their market share it makes no sense to try to compete on price
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Old 03-29-2017, 01:28 AM   #15
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Are you willing to pay more for gas from a station that paid more for its gas? Because if your replacement barrel costs you more than the one you are currently selling you are in trouble and you can't make it up on the downside by charging more for your more expensive barrels.

You have to charge what it costs you to replace. So if the refineries raise their price the local station has to raise theirs to follow suit. If it were price fixed at the local level prices would never drop.

Is it price fixed at the refinery level? Maybe but it could just be that all companies have realized that competing on price will cost them all money (independently rather than colluding) so instead of competing on price they spend it on marketing.

Unless you can produce gasoline for dramatically less than your competition and supply their market share it makes no sense to try to compete on price

You raise a good point, but if any of it was true, then we should see fluctuations in price per litre between stations. If the price of replacement was the only factor, then the price at the pump would vary between stations depending on their need to refill. But it never does. It's all 101.9 or 93.9 or 109.9 across the city, minus Centex and Gas Plus for a cent or two.

It's total BS. Nobody has ever given a legit explanation for why all stations raise their prices within an hour of each other, outside of the obvious collusion verdict. They all buy at varying prices, they all have different levels of supply on hand, but if Petro raises the price down the street, suddenly the gas in Shell's tanks also cost more, and now must charge more.
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Old 03-29-2017, 01:38 AM   #16
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Quote:
Originally Posted by 4X4 View Post
The price of gasoline is such a scam. I understand that the price of oil varies, and therefore, the price of gas varies along with it. The part that pisses me off is that all the stations raise their prices within an hour of each other. It's not like they all got their truckload of gasoline on the same day, when oil was at $50. Some of them bought it on Thursday and it was $47, and others bought it on Tuesday when it was $53. So are the refiners all running these tabs where they posthumously adjust their price, based on new expenses? Of course they're not. It's collusion. Gas stations get away with blatant collusion. If Esso buys a new load of gas that costs more, they raise their price to match, and all the other stations raise their prices to match, regardless of what they paid for the gas that's already in their tanks. And we just pay it. Got no choice.


I know Oil and Gas is Alberta's prime industry, but as soon as someone comes out with an electric 4x4 pickup, I'll be the first one in line to buy it. Then I can get f'd by Enmax instead. After all, variety is the spice of life.

Edit* I also know that the Gas in Oil&Gas is natural gas, not gasoline, so don't bother schooling me on that.
I love this explanation. By theory, it works the opposite way. They have some gas in the system at $50 and the new fuel at $60. So it blends together. But they know next time it will be $70.

Save yourself some aggravation and just buy $10 at a time to blend to the average price throughout the year. It will take some more time, but it should balance out your gas swing complaint.
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Old 03-29-2017, 01:52 AM   #17
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I'll just save myself aggravation by paying whatever the pump price is, but the bullcrap doesn't escape me. When Rona and Home Depot and Loews can have sales on 2x4s, but no gas station in history can ever have a sale on gas, it looks like collusion. I'm not asking for a "sale", I'm just saying that when one place raises the price, they all do. What do you call that? And what do you call that when half of them bought their supply three days ago for a lower price, but they still jump in on the price increase?

I know where this is going, though. The other half of it is that gas stations don't make money on gas, they make money on confectioneries. I guess I don't know what the solution is, except that I will buy an electric 4x4, once one is available, feasible, and reasonable.
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Old 03-29-2017, 01:57 AM   #18
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Quote:
Originally Posted by calgarywinning View Post
I love this explanation. By theory, it works the opposite way. They have some gas in the system at $50 and the new fuel at $60. So it blends together. But they know next time it will be $70.

Save yourself some aggravation and just buy $10 at a time to blend to the average price throughout the year. It will take some more time, but it should balance out your gas swing complaint.
Also, I love how in real life, the new fuel that they "know" is coming in at $70 requires a price increase today, to the tune of 20 cents, but the price decrease they know?? is coming tomorrow only garners a steady decline of a cent a day for the next 10 days.
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Old 03-29-2017, 02:09 AM   #19
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Quote:
Originally Posted by 4X4 View Post
I'll just save myself aggravation by paying whatever the pump price is, but the bullcrap doesn't escape me. When Rona and Home Depot and Loews can have sales on 2x4s, but no gas station in history can ever have a sale on gas, it looks like collusion. I'm not asking for a "sale", I'm just saying that when one place raises the price, they all do. What do you call that? And what do you call that when half of them bought their supply three days ago for a lower price, but they still jump in on the price increase?

I know where this is going, though. The other half of it is that gas stations don't make money on gas, they make money on confectioneries. I guess I don't know what the solution is, except that I will buy an electric 4x4, once one is available, feasible, and reasonable.
Costco gas is most always the cheapest gas in Calgary. They might raise their prices with others but on average it's still cheaper. That being said it does make me wonder how they can sell their gas at a cheaper rate while still paying the same rate as others from the refinery. Is it based on volume of sales or that other retailers are just greedy.
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Old 03-29-2017, 04:40 AM   #20
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We have had to travel to B.C. severl times in the last few months and it has been obvious they don't have the same fluctuation in prices. Same price trip after trip. We also joke about what the gas prices will be at the couple of stations by Deadman Flats, they always vary and one alternates being higher than the other.
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