2164 replies to this topic

[Mike K.]

A few years back a buddy who ran an independent gas station said that they had no choice but to price their gasoline in-tandem with the other stations, or they wouldn't receive their supply.

 

Take that with a grain of salt, but that was his take.

[sebberry]

An interesting aside is that we not only have just three days worth of fuel, but we also have only three days worth of food on the entire Island at any given point in time.

 

 

Shouldn't have built across from the Mason Street Farm then.  #FoodSecurity

[Nparker]

Shouldn't have built across from the Mason Street Farm then.  #FoodSecurity

Fortunately the MSF can still supply the entire region with all the organic kale it could ever want.

[DustMagnet]

Fortunately the MSF can still supply the entire region with all the organic kale it could ever want.

 

Yeah, but that's like one plant?

[LJ]

I have a feeling most local stations buy through the same three or four distributors. I don't know for sure, but as far as I know, all gasoline and diesel fuel on Southern Vancouver Island and the Gulf Islands comes from the Arbutus Ridge fuel depot. There used to be one at the entrance to the inner harbour years ago, but that's long gone. 

 

In Vancouver, they have the Parkland Refinery (Chevron), a Suncor terminal (Petro Canada), an Imperial Oil terminal (IOCO - ESSO/7-11) and a Shell terminal. I think that's all that's left. Costco or Co-op must be getting their fuel from one of these suppliers. 

 

Look at the fuel trucks that fill up gas station tanks. None of them say "Chevron" or "Shell" or "Petro Canada" or "Esso". It's all the same nondescript truck that drives around to each station. Who knows if you're actually getting Suncor fuel when you fill up at Petro Canada? No clue. With the restrictions we have on pipeline and rail capacity, I'd bet they all take what they can get.  

 

I've heard that Vancouver Island only has three days worth of fuel at any given time. 

Co-op gets their fuel from their own refinery in Regina.

[Matt R.]

We see co op getting gas from Shamrock Fuels from Mill Bay.

Matt.

[vortoozo]

Co-op gets their fuel from their own refinery in Regina.

 

They do have a refinery in Regina, but they use the same distributor on the Island as most other stations.

The gas you get at nearly each station on the island is from the same refinery. The only difference is the additives.

Believe Shell is the only one that has their own separate supply.

[LJ]

^ ^^ Hmmm, their glossy brochure they sent me said all their gas comes from their refinery in Regina, Co-op wouldn't lie to me would they?

[Mike K.]

The rack price today for Nanaimo is 86.8, and at that rate we should be seeing $1.25-1.30 at the pump, not $1.45.

[Jason-L]

The rack price today for Nanaimo is 86.8, and at that rate we should be seeing $1.25-1.30 at the pump, not $1.45.

But it's summer and additives and refinery shortages and some other bafflegarb... but definitely not price gouging.

[Mike K.]

85.50 today. The rack price is the price for the gas station, essentially, all-in, including transportation. There "might" be a few cents of additional costs on top, but the rest will be taxes and then a profit margin. Stations claim their margins are 2-4 cents but obviously at 1.45 at the pumps they're enjoying quite the spread when Costco can price its gas at $1.37 and still profit (decently).

[rjag]

But it's summer and additives and refinery shortages and some other bafflegarb... but definitely not price gouging.

 

If price gouging was the case then why only Vancouver/Victoria as opposed to any other jurisdiction anywhere in North America? Heck Whitehorse should be paying more but they arent...big difference...regulations, transit taxes and Ethanol.. 

[rjag]

85.50 today. The rack price is the price for the gas station, essentially, all-in, including transportation. There "might" be a few cents of additional costs on top, but the rest will be taxes and then a profit margin. Stations claim their margins are 2-4 cents but obviously at 1.45 at the pumps they're enjoying quite the spread when Costco can price its gas at $1.37 and still profit (decently).

 

Mike is that $.855 before taxes?

[Jason-L]

If price gouging was the case then why only Vancouver/Victoria as opposed to any other jurisdiction anywhere in North America? Heck Whitehorse should be paying more but they arent...big difference...regulations, transit taxes and Ethanol.. 

My guess is the computer pricing algorithm has calculated the proper point to maximize profits.

[Mike K.]

Mike is that $.855 before taxes?

 

Correct. The monstrosity that is fuel taxation is then added to the sauce, 8.55 cents of which is the carbon tax that somehow, in some way, is saving the world as we consume more oil.

[Mike K.]

84.4 today for the rack rate in Nanaimo.

Costco has 1329 while everyone else is charging at least 1409.

[Cats4Hire]

Anyone know how long the lines are at Costco? It probably isn't worth the savings if you're going just for gas but if you're doing any other shopping 8 cents is pretty good. Don't think I've seen them that far from the rest of the stations in quite a while. 

[Mike K.]

It's usually not too bad. If you're already there the wait isn't much of an issue.

[DustMagnet]

Line length at Costco varies.  It can be absolutely packed, or surprisingly light.  They open earlier than the warehouse, so if you are in the area around 7-8ish in the morning it's easy.

[Mike K.]

The rack price for Nanaimo has crashed down to 81 cents.

 

Now lets see how long it takes for gas stations to lower their prices, which at 81 cents should reflect $1.20-$1.25 at the pumps.