Two stations along Wakesiah Ave. in Nanaimo on Sunday, Feb. 23 show a nine cent per litre price difference. (Alex Rawnsley/NanaimoNewsNOW)

By Alex Rawnsley

PRICE WAR

‘That would qualify as a price war:’ Nanaimo gas stations trade pricing blows

Feb 26, 2020 | 6:12 AM

NANAIMO — Several area gas stations are duking it out ahead of the busy summer driving season, with motorists being the real winners.

Gas prices for Nanaimo have dropped steadily since the Family Day long weekend when one station in central Nanaimo unexpectedly dropped their price for unleaded gas 20 cents a litre below the then-market average of 139.9 cents.

The decision created traffic headaches and long lineups for motorists looking to score significant savings.

Patrick DeHaan, head of petroleum analysis for GasBuddy told NanaimoNewsNOW the situation is unusual.

“To see prices fluctuate like that, there’s more at work there and that would qualify as a price war,” DeHaan said. “We almost never see prices fluctuate between morning and evening or day of the week by 20 cents a litre.”

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GasBuddy.com’s price ‘heat map’ for Tuesday, Feb. 25 showing Nanaimo, Parksville and Qualicum Beach pricing ‘hotter’ and cheaper than areas on Vancouver Island or the lower mainland. (GasBuddy)

Since the long weekend, prices across Nanaimo incrementally dropped. As of Tuesday, Feb. 25, most stations in the region charged between 124.9 and 125.9 cents per litre for unleaded gasoline.

NanaimoNewsNOW contacted several area gas stations and company head offices, but did not receive a comment on recent pricing strategies or local competition.

DeHaan said local station managers have a lot of influence on what to charge for gas and competition can be a huge motivator.

“We’ve seen so many games played over the years by stations that may have bad blood or want to undercut their competition,” DeHaan said. “If they see somebody trying to get the better of them, they may go over the top and lower their price to get back at them and that’s why we call it a price war.”

DeHaan added gas stations typically only make a few cents per litre profit on fuel sales and could even lose money in a price battle. He said more lucrative sales come from drinks, snacks and other quick purchases that owners hope make up the difference.

Penticton had the lowest gas prices in the province on Tuesday, Feb. 24 with several stations at 107.9 cents per litre.

For the latest gas prices in Nanaimo, click here.

alex.rawnsley@jpbg.ca

On Twitter: @alexrawnsley