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By Caden Fanshaw

Gas Prices

Who makes money when fuel up at the pump?

Jun 20, 2023 | 5:07 PM

PRINCE GEORGE — Every time you head to the pump and fill up your vehicle of choice a few parties make a profit including the gas station and the refinery that made that fuel.

How much those parties have been making has changed in recent years since COVID-19 when the price of fuel at the pump fell sharply.

Prior to the pandemic, it was routine for retailers to make a few cents off of most litres of fuel according to data presented by analysts. As much as 10 cents per litre profit was considered a large amount and was usually short-lived.

As identified by Kevin Barredo, an analyst who monitors data weekly presented by the BC Utilities Commission, since the pandemic the margins had changed for an extended period of time.

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Data courtesy: Kevin Barredo / Fuel Analyst

Barredo pointed out the margins for most of 2022 saw fuel retailers making a tidy profit, in 2023 that has regressed back to pre-pandemic levels. One factor that has not regressed has been the margins being taken by refineries, one of the main drivers behind high fuel costs.

Last quarter one of the most notable producers, Imperial Oil (Esso) had over $12 billion in revenue, good for over $1.2 billion in earnings.

Since the pandemic, refineries have made upwards of 50 cents per litre of gasoline sold. While prior to COVID, making such a profit was not usual for consecutive months.

Data courtesy Kevin Barredo

That will likely not change going forward according to analyst Patrick De Haan with GasBuddy. De Haan said disruptions at refineries continue to drive costs up.

According to De Haan, don’t expect to see much relief at the pump this summer when filling up, if any it may come in the second half of the warmer months.

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Twitter: @CadenFanshaw

Email: Caden.Fanshaw@pattisonmedia.com