Calgary gas prices vary as some stations sell fuel below cost

Calgary drivers are seeing a wide range of gasoline prices across the city, with some retailers reportedly selling fuel below their replacement cost to attract customers.

The cheapest price reported Thursday was about $1.52 per litre at Costco, while two Tempo locations were selling gasoline for around $1.54 per litre.

Energy analyst Dan McTeague said to Calgary Herald,“the cost of replacing gasoline is currently around $1.60 to $1.61 per litre for retailers.”

That means some stations selling below that level may be taking a loss on regular gasoline. McTeague said, “retailers can offset those losses through supplier discounts, convenience-store sales, premium fuel and diesel.”

Calgary's wholesale rack price was approximately 139.6 cents per litre, before provincial taxes and retail margins are added.

Despite the lower prices at some stations, gasoline in Calgary remains significantly more expensive than it was a year ago, with prices currently about 40 cents per litre higher.

There could be some relief ahead, however, as the seasonal switch to winter-blend gasoline is expected to reduce prices by roughly eight to 10 cents per litre.

McTeague also points to the weak Canadian dollar as a major factor pushing up fuel costs, estimating it is adding about 34 to 35 cents per litre to gasoline prices.

Higher gasoline and diesel prices could also put additional pressure on consumers and businesses, potentially contributing to broader inflationary pressures.