Market watchers aren’t terribly surprised at today’s hike in gas prices.
Dan McTeague, Gasbuddy.com analyst, says the increase to 113 a litre is really where prices should be right now with a wholesale price around 101.
“A week and a half ago if you bought gas and filled up your tanks, it probably did cost you 95c a litre,so you’re selling it what you bought it for, you’re not making any money,” says McTeague.”You’re not making enough to cover the costs of honouring a credit card, that takes two cents off the bottom line for any gas bar. Then of course you have your overhead.
McTeague says any gas station selling for under 113 right now is selling at a loss.
