Pump wars: fluctuating gas prices leave drivers to decide between cheap, quick
A 15-cent price gap at two gas stations across the street from one another near Polo Park had drivers choosing between saving cash or saving time on Wednesday.
At the Shell on Ness Avenue, vehicles came and went with little delay, even with prices posted at 134.9 cents per litre. Across the street at Domo, long lines of cars spilled onto Ness as customers flocked to fill up at 119.9 — or 114.9 for Domo Club members.
The price difference and recent fluctuation left some drivers scratching their heads.
MIKAELA MACKENZIE / FREE PRESS
Shell on Ness Avenue with prices posted at 134.9 cents per litre, Wednesday.
'It doesn't make much sense to me, but I'll save money where I can,' said one driver, who declined to give their name, at Domo.
Over at Shell, Lynn, who was filling up her small sedan, said she was willing to pay more for what she believes is higher-quality fuel.
'And they give out Air Miles,' she said.
Another woman a few pumps over said the 15-cent savings wasn't worth the wait across the street.
The Domo had a steady stream of customers Wednesday afternoon, while the pumps at Shell were never at capacity.
Jon, who was fueling his 120-litre Chevrolet Suburban at Domo, said the savings were worth the wait.
'When I saw the price here, and the price at Canadian Tire on St. James (134.9), I knew it was going to go up,' he said.
Filling his tank at 119.9 saved him about $18 compared. For most drivers, with tanks ranging from 50 to 60 litres, the savings were around $7.50 to $9.
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Former Member of Parliament and GasBuddy analyst Dan McTeague said Winnipeg's fuel market is known for unpredictable pricing.
'Gas retailers often sell fuel for below cost, and that's really the game there,' he said Wednesday from southern Ontario. 'Whoever they're trying to outdo, obviously their competitors, but the means with which to do this require either being a very large box store that cross-subsidizes losses in selling gasoline to get people onto your site, recovering losses with sales in your store, or you might have competitive advantage no one else does, such as not paying taxes.'
He said retailers like Costco can afford to sell fuel at a loss and make up the difference with in-store sales.
McTeague said the wholesale or 'rack' price for fuel in Winnipeg was about 93.7 cents per litre on Wednesday. After adding the provincial fuel tax (14 cents), federal excise tax (10 cents), and GST (roughly six cents), the cost to operate a pump lands around $1.23.
'No gas station can turn on their pump, that is to say, the electricity to run them, honour credit cards or do any type of business under $1.23 per litre today in Winnipeg,' he said. 'The fact that some do is either recovering the cost on something like beef jerky inside the gas station, or they have a rich uncle OK with having them lose money.'
MIKAELA MACKENZIE / FREE PRESS
Across the street at Domo, long lines of cars spilled onto Ness as customers waited to pay 119.9 cents per litre, while Domo Club members paid as little as 114.9 cents.
Some retailers may qualify to skip the GST or receive tax breaks — including Indigenous-owned operations — which could push prices as low as $1.12 per litre, McTeague noted.
'But that's really putting your nose to the grindstone,' he said.
He emphasized that 134.9 cents per litre was the true market price on Wednesday.
'So what you really have to ask is when you go to these stores, how do they honour a credit card? It costs them a point or two for every litre of gasoline,' he said. 'If they have rewards loyalty programs… how do they pay for that? How do they pay for electricity to turn on the pumps, or pay for the staff?'
He calls these deep discounts 'gas bar shenanigans.'
In some cases, he said, a gas station will slash prices to compete with a nearby rival, prompting suppliers to temporarily lower wholesale costs to help that station maintain volume — a tactic known as dealer support.
'Gas stations win at the end of the day because they move volumes,' McTeague said.
As for concerns over quality at discount stations, McTeague dismissed them.
'I don't know where they would get it from,' he said. 'Fuel can become contaminated if it's put in tanks that don't work, but generally speaking, wherever you get it from, the refineries can't sell stuff that would cause a vehicle to break down. There are liability issues. There are some pretty strict and strong sanctions. And there are only a couple of suppliers — Co-op and Imperial — that come to the market in Winnipeg, and they share product.'
scott.billeck@freepress.mb.ca
Scott BilleckReporter
Scott Billeck is a general assignment reporter for the Free Press. A Creative Communications graduate from Red River College, Scott has more than a decade's worth of experience covering hockey, football and global pandemics. He joined the Free Press in 2024. Read more about Scott.
Every piece of reporting Scott produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press's tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates.
Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber.
Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
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