Scammer
Banned
Calculation Variables Used in Function:
1 U.S. Gallon = 0.83267 Canadian (Imperial) Gallons
1 Canadian Gallon = 1.201 U.S. Gallons
1 U.S. Gallon = 3.785 Liters
1 Can Gallon = 4.546 Liters
$5.67 for premium a Gallon - (1.26 x 4.5)
$5.40 for mid grade a Gallon - (1.20 x 4.5)
$5.04 for regular a Gallon - (1.12 x 4.5)
The sharp hikes in gas prices some parts of Canada, particularly Montreal, are experiencing are the result of retailers' "guerrilla warfare" pricing tactics, says one industry consultant.
Competition among dealers is bringing volatility to the pumps, which means prices for consumers will take wild swings — both up and down — said Michael Ervin of M.J. Ervin and Associates in Calgary on Friday.
"When we see prices moving up and down, without any change in the underlying wholesale prices or with little wholesale price change, then it's a reflection of price war activity," Ervin said in an interview with CBC News.
"It's guerrilla warfare."
In Montreal, gasoline prices have swung up and down by as much as 12 cents a litre over a period of a week or two. Gasoline prices were just shy of $1.15 a litre at the pump on Friday.
In November, drivers in Edmonton were paying 88.9 cents a litre while those in Montreal paid $1.21, a difference of 32 cents.
Drivers were grumbling in Toronto Thursday morning, as gas prices spiked by four cents a litre, to $1.15.
The average gasoline price in Canada Friday was $1.07 for regular gas, compared with $1 a litre a year ago.
Price swings localized
Ervin told CBC News that it's unusual to see such intense fluctuations in the winter, especially those seen in Montreal.
"Gas demand is low compared to the summertime, but that doesn't mean we don't see price war activity from time to time, and … [Montreal is] an example," he said.
"But generally, prices are pretty stable across Canada.
He said the wild swings can also benefit consumers.
"Strategically, tactically, dealers move their prices down for a period of time, then back up again and try to do it quickly — so quickly as to get in and get out and grab volume before the big oil companies basically take notice and change their prices," he said.
"You can't predict when they start; you can't predict how they go or how long they will last. It's localized."
Ervin said the price increases are also affected by the wholesale price of gas. The price of the key component — crude oil — has risen lately to about $88 US a barrel.