Brace For Higher Gas Prices For Some Time
Filling up your gas tank is not likely to get cheaper anytime soon.
With the price of crude oil around $57 a barrel and a strong US economy driving demand, prices are likely to remain high.
Dan McTeague of GasBuddy.com says small gas station operators are also being squeezed by the big chains.
A gas pump is seen in this AM800 News stock photo. (Photo courtesy iStock/dkhoriaty)
He says it costs over $1.10 a litre for the station to buy the fuel.
"I would think if people can find gas for under $1.10 a litre they should grab it." says McTeague, "Even $1.11, because that's selling gasoline for less than what it costs to replace. If I'm a station offering for $1.07 or $1.05, I'm obviously offering last week's inventory which was much cheaper"
He says he's spoken to dozens of gas stations over the past 5-6 days and many are very concerned that their margins are way too low and this could lead to some financial difficulty going forward because they have no control over the wholesale price.
McTeague estimates gas stations break even right now at about $1.17 a litre.
A few stations in Windsor are still at $1.07.9, but many are now up at $1.24.9.