Gas prices on Vancouver Island continue to hover around the 214.9 cents per litre mark Friday, considerably higher than what was predicted earlier this week.
Some analysists believed prices would drop below the $2 mark on the island. Indeed on the Lower Mainland, the savings have come.
People were topping-up their tanks in Metro Vancouver at 189.9 cents a litre Friday. That’s a saving of 35 cents from two days prior in the city.
“I don’t know, we always pay more over here,” said Rob McMurray, who was getting gas today in Saanich. “Maybe because it’s tougher getting gas over here, shipping costs.”
Paul Pasco, a principle consultant with analytics company Kalibrate, says there’s often a delay in gas prices between the island and the mainland.
“The price changes that we’re seeing in Vancouver typically take about three to five days to hit Victoria,” he said.
According to fuel analysts, this week’s price delay is due to delivery issues.
The fuel has to make it to the Lower Mainland from refineries predominately in Washington state. That fuel then has to be marine shipped to holding tanks in Nanaimo, then distributed to island stations by truck.
As to why not cut the cost of the fuel that’s already in the tanks, the experts say it’s economics.
“So what they’ve got to do is they’ve got to empty their tanks,” said Pasco. “Then get a new delivery at a lower price before they are able to offer that lower price at the pumps.”
Timing is a key question. Many wonder why Vancouver gets the relief when we don’t – but why, when prices rise, there seems to be no delay between the island and the mainland.
On Sept. 29, prices soared to record highs in Vancouver, reaching 239.9 cents a litre. That same day, several Victoria stations jumped to the same record high.
“Isn’t it funny how the gas prices streak up really fast all across B.C. but when it comes time to climb back down, we seem to take our time here?” said Saanich driver Chris Williams.
“It’s hard to believe anything anymore, especially with the gas companies,” he said.
As some question why increases come quickly and drops come slow, oil and gas expert Pasco says his data shows hope may be on the horizon for Vancouver Island.
“I am starting to see a slight inflection downwards in your retail prices this morning,” said Pasco.
“If there is good news, the latest predictions show the drop should come Monday,” he added. “You should start to see that real price drop that we’ve seen on the rest of the Lower Mainland.”
