Normally, gas retailers in Sault Ste. Marie all post the same price for fuel, give or take a fraction of a penny. There’s usually not a big difference, but that changed yesterday when one local retailer used a retail tactic known as “restore”.
That’s when one retailer will up their prices well above the competition in hopes they will follow suit. Sometimes it works, sometimes it doesn’t. So far, it’s not working today.
McDougal fuel stations like Esso and select Shell stations upped the prices yesterday to $1.08 a litre, a full ten cents more than Circle K who dropped the prices to 98.4 cents Wednesday.
Gas stations tend to make a margin of about 10 cents a litre and the restore game seems to be all about making bigger profits and controlling the market. Other stations are posting prices at 99 cents a litre or just over a buck.
The big gamble of course is for the retailer who ups the prices in hopes other stations will follow the lead, it could mean a very slow day at the pumps for that retailer while others are seeing a brisk business. Guess who’s seeing a brisk business today?
You can keep up with the lowest gas prices in town right here on SaultOnline.com from the Getting Around… Lowest Gas Prices found in the top navigation menu!
Expect gas prices to bump up next week as we head into the long weekend.