Over the past few weeks we have seen an increase in gas prices, but this is just the beginning.
"It's what happens when you have oil companies that follow the U.S. market and then basically whatever happens south of the border they raise the wholesale price, even though it has nothing to do with our supply here in Canada. That's the way it has been for four years and that's the way people like it apparently," outlined Dan McTeague, consultant for GasBuddy.com.
McTeague reported to 99.5 Drum FM that there was a problem with two refineries in Chicago, which made the wholesale price for gasoline on the U.S. market increase.
"The Canadian dollar dropped a little bit and that led to about a 15 cent litre increase on the wholesale side, about a 35 cent a gallon U.S.. You're paying in the mid 90's and now you're paying upper 109,108 or 107."
"Those prices also reflect on what's known in the industry as a retail margin. It could go to $1.13 (or) $114.9 beginning after this Sunday when the carbon tax kicks in at 4.7 cents a litre," added McTeague."If there's an increase in the market south of the border just before that happens, gas stations are told to pay a higher price. In Canada the highest price is the law, but there's really no transparency there."
A lot of blame and confusion can be thrown on multiple people, but McTeague wants to ensure that Albertans know the reasons for the increase.
"It's best when people know when it's going to happen, why it's going to happen and who is responsible for it. Everyone is taking a slice of the pie and if you're in Drumheller, it's costing the gas stations 99 cents a litre to buy the fuel to begin with," explained McTeague.
"The reasoning behind the increase is with Chicago and the two refineries shutting down, but those are behind us. They are both are back in operation so we should see some relief on that front, but just as that relief takes place the provincial government places the five cent carbon tax. What the industry taketh and giveth is then taken again by the government."
The most popular price for regular gas in Drumheller right now is $1.08.9 per litre.