Gasoline prices set to fall in Victoria, analyst says

Victoria residents should expect a dramatic drop in the price of gasoline in the coming weeks, acccording to one analyst.

Dan McTeague, senior petroleum analyst for the website GasBuddy.com said the current per-litre price of $1.15 to $1.19.9 in Victoria is out of step with the wholesale price of gasoline.

In the next three to four weeks, he said, gas prices should decline by about 15 cents or more.

"Right now, if I'm a gas station owner in Victoria, it's costing me about 92 cents-a-litre to buy my gasoline,"McTeague told All Points West host Robyn Burns ...$1.17.9means I'm making fantastic money."

"That's a retail margin of virtually 25 cents a litre. Almost unheard of," he said.

• Gas prices to fall in B.C. and Vancouver but only so far
• July gas prices in B.C. will be lowest since 2010, analyst says

"That to me is reflecting of wholesale prices and a reality for gasoline that existed almost a month ago."

Since then, McTeague said, gas station owners have gone through their inventories of higher-cost gasoline related to pipeline disruptions and bad weather for shipping.

"So, I would expect that gas station owners and operators and those who manage them on the part of the major oil companieswill begin to reflect the reality," he said.

"It's costing them 92 cents a litre.I'll give them 10 cents as a retail margin, it should be down to a $1.02.9, not $1.17.9."

With files from CBC Radio One'sAll Points West.