Costco behind Victoria's plummeting gas prices: expert
For days, Victoria residents have been taking advantage of uncommonly low prices at the pumps –- the result of an ongoing gas war that trackers say is being driven by Costco.
The discount retail giant opened a gas station six months ago and has been selling fuel at a loss in order to attract customers, according to Jason Toews of GasBuddy.com.
On Friday prices dropped to as low as 96.9 cents per litre as local gas bars tried to prevent customers from lining up at Costco's pumps.
"What happens is the competitors say ‘No, we're not going to let you do that. We're not going to let you steal all [our] customers.' So they lower their prices, too," Toews said.
Drivers have been taking advantage of low, but inconsistent prices for days ranging from 99.9 to 124.9 cents per litre in different areas of the city.
"What we've seen is gas prices become very volatile with prices going up and down," said Toews.
Costco-driven price wars have occurred in larger cities such as Toronto and Edmonton, Toews added, but Vancouver is unlikely to experience a similar drop.
He suggested that Victoria can expect to enjoy low prices for a few more weeks before going back to normal, while Vancouver should continue to hover at around 1.25 cents per litre.
With a report from CTV British Columbia's Penny Daflos