'Retail shenanigans' behind swinging gas prices, says expert

Gas prices in the city seem to be going up and down like the rising and setting of the sun. 

In the past few months, Windsor fuel stations have sold gas at a range of prices that swing as much as 14 cents in a single day. The prices are often more expensive in the morning than in the afternoon, a trend one market analyst is calling retail shenanigans.

Every gas station has a margin they can operate in. Dan McTeague, the senior petroleum analyst for gasbuddy.com, puts that margin between eight and 11 cents per litre. Gas stations will buy gas at a wholesale price around 58 cents per litre. Then there's taxes, which work out to be 24.7 cents, he said.

"You can see where a gas station in Windsor today can't sell gasoline for under 94 cents a litre, because of course to do so, would be to sell gasoline at a retail level that's lower than what they bought wholesale," McTeague said.

These retail shenanigans are what happens when a big box store charges less for gas, because it knows customers will probably go into the stores and buy products it'll make money on. That kind of market is tough for independent gas station owners.

Windsor Variety and Gas, open since 2011, said price fluctuations have been tough, but the store has been able to off-set its costs with its auto repair garage.

"It's not easy for us, for independent stores owners, but we're doing okay so far, but it's so hard," said Sam El-Rifai, the general manager of the store.

If gas stations around the city are set at $1.05 per litre in the morning, then in the afternoon change to 95 cents, it can be tough to keep up.

"We don't know exactly why they're playing these games," El-Rifai said. "It's very tough for independent stores, it's hard for us. But we're doing ok so far, no problem. We'll survive."