Gas prices in Hamilton

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Gas prices have dropped slightly since Saturday’s record high of $1.42 a litre, but analysts say that record could be broken again this week if the crisis in Iraq escalates. Some gas stations on Sunday, the price ranged from $1.34-$1.39 per litre.

“I charge lower,” Iqbal Motla, owner of A and I Petroleum said “the reason is this road is highly competitive and if I don’t I can’t stand here.”

Down the Hwy. 6 where Molta’s competition, Pioneer has a line of cars waiting at the pumps, because gas is being sold $0.07 less than wholesale price.

Analysts say these big gas companies can afford to take a hit on the retail price, because they are owned by the wholesalers like Suncor.

“They don’t care if they lose retail margin,” Dan McTeague with Tomorrow’s Gas Prices Today said “but if you’re a mom and pop on Hwy. 6, chances are you are not going to survive.”

McTeague says Pioneer is partially owned by Suncor and so is Petro Canada. Suncor is a wholesaler who has ownership in retail giving them an advantage and helping wipe out the competition, which can drive up the prices.

The analyst also said that the ongoing crisis in Iraq can also drive the cost of gas up in North America.

“I know of one refinery in Newfoundland that uses Iraqi oil, so there’s a correlation,” McTeague said “if the risks increases, speculators will take that as a sign that there is more danger ahead… drive prices higher.”

Analysts say that if you’re going to fill up your gas tank, do it on Sunday night because gas is expected to increase overnight.