CALGARY- It was a rude awakening for those who went to fill up their tanks on Friday morning. Overnight, the price of gas jumped eight cents a litre in Calgary, to $1.20.
Some drivers were able to fill up before the increase, after being tipped off by GasBuddy.com. The website tracks prices in major cities, and has software that calculates when retailers are about to hike prices. They then tip off subscribers.
“We have a history of the wholesale prices and retail prices, and we know that when the gas stations’ margins get to a certain point they’re going to raise their prices,” explains Jason Towes from Gas Buddy. “That’s what happened this time.”
He adds it all comes down to timing.
“They tend not to hike on the weekend, it’s usually Thursday. Before the weekend is a popular day to hike the price in Calgary.”
Industry insiders say wholesale prices for gasoline have been rising over the last few weeks, which is what finally sparked the increase at the pump.
“What happens sometimes in the retail market is the retailers are unwilling to make the first move to raise their prices to retain market share,” says petroleum price analyst Jason Parent. “They tend to hold that price until their markets get squeezed and it gets unsustainable for them, and you see a large jump in price.”
He adds that the trend is for gas prices to keep rising, and that they usually go up in the spring ahead of the busy summer driving season.
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