Even though the price of gasoline has dropped considerably this month, motorists in Steinbach are noticing that the cost to fill their tank is still much higher than in other parts of the province.
With the consumer carbon price officially set to zero, motorists felt immediate relief at the pumps on April 1st, with gas prices dropping by about 18 cents per litre. In Steinbach, prices dropped to 137 cents per litre. Prices have fallen even further in the last 10 days and today sit at 130.9 cents per litre.
However, prices at stations in Winnipeg and Brandon are much cheaper. According to GasBuddy, some stations in those two cities are selling gasoline for 116 cents per litre.
Patrick De Haan is Head of Petroleum Analysis at GasBuddy. He says it is difficult to know exactly why there is such a discrepancy in gas prices throughout Manitoba.
"I do suspect though that some stations are stuck with fuel they bought at a far higher price," suggests De Haan. "And they may be more reluctant to lower the price, given the fact that the oil has only most recently plummeted in the last week or so."
De Haan says there has been incredible volatility in the price of oil. He notes with the United States rolling out tariffs, this is having a major impact on oil prices. For example, he notes on Wednesday, the price of oil dipped to as low as $55 per barrel before ending the day at $62 per barrel.
"So quite a swing in the price of oil which is also leading to quite a wild swing in the wholesale price of fuel, which is what stations are paying," he explains.
De Haan says it could be this combination of gas bars stuck with gas they paid much more for, and the high amount of volatility that is leading to the discrepancies.
"We are noticing that all across, not only Canada but the U.S. as well," notes De Haan. "Where prices are and have been a bit volatile this week. Going up and then going down because of the volatility in the overall energy markets as well as the broad stock market on all of this uncertainty."
He says this volatility could last another week or two, depending on how long the tariff situation continues to unfold.
"I do think that over time as stations sell through their more expensive fuel that they may have purchased, that they may be more likely to lower prices," he suggests. "However, keep in mind, as I described, the volatility on the market may continue where prices could shoot up and down in a violent way over the next couple of weeks until this gets sorted out."
De Haan says another thing to keep in mind is that gas prices typically climb this time of year because of pressure from refineries doing maintenance. He notes the switchover to summer gasoline has already taken hold across much of Canada.
"Gas prices do typically rise (this time of year), and that's why prior to the carbon tax they had been increasing slowly but steadily," he adds. "Now prices may start to moderate, really more contingent on how the tariff situation continues to unfold."
Meanwhile, Manitoba currently has the third lowest average price of gasoline among Canadian provinces. The average cost is 129.9 cents per litre, behind only Ontario and Alberta. The most expensive average cost is in British Columbia at 154.2 cents per litre.
According to GasBuddy, the cheapest fuel today can be found in Sarnia, Ontario at 109.9 cents per litre. White Rock, British Columbia has the most expensive fuel at 168.9 cents per litre.