Gas prices jumped by around 14 cents per litre Thursday morning, but it isn’t expected to last long.
Senior Petroleum Analyst at GasBuddy Dan McTeague said the jump is for gas stations to recover costs from the low prices we’ve been seeing.
“Gas stations were selling you gasoline up until yesterday for the same price at which they’re buying it. That doesn’t include the cost of running that gas station, the overhead costs associated with selling fuel, nor does it take into account the rewards programs and things like credit cards which the retailer has to absorb.”
He said including transportation from Edmonton refineries, gas stations are paying about $1.03 or $1.04 to buy gasoline.
McTeague expects prices to fall back down next week.
He added that “big box” stores are able to sell gas for less, because they can subsidize the loss through in-store profits.
