Gas 119.9 in Peachland and West Kelowna

[Crazy Horse]

There used to be far more independent operators than there are now. Most gas station owners rely on pop and chip sales while the oil companies own the fuel, dictate the price and then give a commission. This is why there are no real "gas wars" anymore. The closest thing is Costco selling their gas at cost or being close to the border. An actual gas war now would be very harmful to the few independent station owners that actually buy and sell their own gas. Things have changed a lot in the last 20 years. The big oil companies make very good profit in refining gasoline, and then profit again when it is sold at the pump. Where we really need competition is at the refinery level. The US has much stricter anti trust and competition laws that result in true competition. In Canada we have what amounts to legal price fixing.

[krocky]

Some of them, like myself, carry a company gas credit card. I'm not going to fill up somewhere else to boycott something and have to pay for it myself..

I hear you Tony, in that case I understand. I was referring more to the guy who couldn't be bothered to drive two more blocks to another station. And believe me there would be lots of those.

If you want to be an upstart, start a nationwide or a Provincial petition to lower the price of gas. That's how the HST was done.

The problem with that is a petition has no effect on private enterprise unless there is a consequence and our "free enterprise" Liberal government actually supports this type of corporate greed. How can they not, considering the amount that "BIG OIL" has contributed to their PIGGY bank..

[krocky]

the oil companies own the fuel, dictate the price and then give a commission.

But that doesn't answer my original question

Can anyone explain why the gas is 119.9 in Peachland and Westbank today and 125.9 in both Summerland and Penticton. I don't get why we are paying 6 cents a litre more.

You can't tell me that it's the oil companies deciding to charge 6 cents a litre more for gas 38 kms farther down the road. That's the owners and because we in Penticton are used to paying it, they will continue to charge more unless we make them buck-up.

If every time you bought a candy bar at a certain store they gave you back $5.00 to much change, even after you told them, would you quit going there on your own because "it just wasn't right" or would you line your pockets until somebody stopped them..??

[Crazy Horse]

You can't tell me that it's the oil companies deciding to charge 6 cents a litre more for gas 38 kms farther down the road.

..??

Yes, that is exactly what I am telling you. The guy at the station in Penticton gets a phone call and is told what to sell his gas for. The exception are the few independents, if any, that are still around. They have no choice but to follow the lead of the others and may or may not make money from his gas sales.

[krocky]

Yes, that is exactly what I am telling you. The guy at the station in Penticton gets a phone call and is told what to sell his gas for. The exception are the few independents, if any, that are still around. They have no choice but to follow the lead of the others and may or may not make money from his gas sales.

Well that is not what I've been told but I'm no expert. Are you saying the "all" gas then comes from the same refinery, Petro Can, Shell, Esso, Chevron, Husky or are you saying the gas companies phone each other and say lets put it at 124.9 in Penticton, Peachland is at 119.9 but Pentictonites are gullible, they will pay more. Ok 124.9 it is then don't forget to give Bernie a call over at Shell at let him know, were changes prices at "high noon".

I know the guy at the gas station doesn't make the mega bucks that the oil companies do but I think he has more involvement than you are indicating, but as I said, I am not an expert.

[Crazy Horse]

Here is how it works. Imperial Oil, Petro Canada, and Shell all have refineries in Alberta. They pipe gas to a big Kinder Morgan storage facility. KM pipes gasoline to Kamloops and from there the tanker trucks roll in and fill up, all the same gas. The companies add their particular additives at this point (Techron, Tactrol etc.) These trucks deliver to all the stations in the OK valley. The price is set at head office by the oil company and the retailer gets a 5-7 cent per litre commission. If the station is an independent, he will buy his gas from any one of these refiners from the Kamloops terminal for about 75 cents per litre (today) plus taxes. Now he will sell his gas at whatever the going rate is, as dictated by the oil company stations, and that could be at a profit or a loss depending on the price that day. This is why there are fewer independent retailers today, the oil companies have driven them out of business.

[krocky]

Here is how it works.

Thanks.. A good explanation, sounds like you do know what you are talking about. But you say the price is set at head office.. Who's head office, do the different companies collaborate on what to set the price at.? I can't see them "all" always agreeing. Also how do they then decide that Peachland should be one price, Summerland another and Penticton different again. Also why does it change in these places at different times? Peachland dropped to 119.9 while Summerland was still 123.9 and Penticton at 125.9. Then Penticton and Summerland dropped over the next week or so incrementally to 120.9. That doesn't sound like a head office to me. I don't know, seems like something more to it, if you ask me.

In any case a well organized boycott would still send a "strong" message to whomever is responsible for thinking that we in Penticton should pay more than our neighbors on either side, for no other reason than "We'll pay it !!"

[fluffy]

In any case a well organized boycott would still send a "strong" message to whomever is responsible for thinking that we in Penticton should pay more than our neighbors on either side, for no other reason than "We'll pay it !!"

The only message that will get through to big oil is a drop in sales, which means Joe and Jane Consumer either have to buy their gasoline from a different source, which will likely still be big oil, or they have to use less which means getting them out of their vehicles and that is a major challenge in itself.

[krocky]

You know come to think of it why am I surprised by this. People won't do anything about being gouged on gas anymore than they will do anything about a failing Political system and arrogant politicians squandering our tax dollars. Those of us who try to raise these issues, and there are a few on here, are usually shot down or chastised as if we are somehow "rocking" the boat. Most will happily whine and complain but as soon as you suggest they do something about it, they are no where to be found. In fact some even make excuses as why this is "somehow" OK. Maybe we just need a good old "recession" to wake us up a little.

There, I feel better, knew I shouldn't have taken that "bitter" pill this morning..!!

[fluffy]

We can do what we can to improve our own situations. We can buy vehicles that don't use as much fuel, or a bicycle, or a new pair of sneakers.

[JagXKR]

I think the 5-7 cents per liter is actually too high. If my memory is correct (often isn't) my friend who managed a 7-11/Esso in Northern BC said he got 2 cents per liter from Esso regardless of the pump price. I do remember he had to contact Esso for any price changes. If the rest of the stations in town lowered their price he would call Esso to get the ok to lower his to match. Vice verse going up. Sometimes Esso called and told him to lower prices first before the rest of the stations but they would all follow suit within the day. Suffice to say he never was allowed to initiate any price change without Esso's ok.

[tmjones]

Had a pleasant surprise last night at a local gas station near Channel here in Penticton. She said, "You will be getting our gas 2cents cheaper than our posted rate because we have a special Sun, Mon & Tues". She mentioned that they didn't want to start a gas war but just wanted to show their loyal customers some appreciation. In my mind, I was thinking "why not" those days are gone and we need them back. She also said that I would still be receiving my airmiles during their special. This special is on for a limited time until the end of January. (Not sure if I'm allowed to name the gas station here but my notes should give the answer)

[tmjones]

We can do what we can to improve our own situations. We can buy vehicles that don't use as much fuel, or a bicycle, or a new pair of sneakers.

We decided we would not turn into a 2 vehicle family so we tuned up our bikes in the spring and got active.
I walk to work and my husband rides his bike and our son walks to school. Love it!

[Glacier]

[sulchie]

To create a gas war you need an "upstart" to trigger it. Typically happens when a new retailer arrives in town, or retailer known for high volume and heavy discounting is in town, think Costco.

Both Abbotsford and Kamloops Costcos have gas pumps, low and behold both communities have significantly lower fuel prices.

Kamloops has a Safeway gas station which gives you 5 cents/ liter when you buy $30 in groceries. Vernon also has one, wonder what's keeping them out of the Kelowna market?