Calgary, Alberta - Gas prices spiked 8c in one day in this metropolis of nearly 1.1 million people. The jump came as a shock to many commuters who were caught off guard by the amount of the jump. However, not everyone was unprepared for the price change. The app known as "Gas Buddy" lived up to its name and was watching his friends' backs as it tipped off motorists that a price hike was coming. This gave savvy users a brief window in which to tank up one last time at the lower prices.
A spokesman for the price watching service explained that "Gas Buddy" conducts careful analysis of retail and wholesale prices and has become adept at predicting when price increases are likely to occur. The app then alerts commuters that a price hike is coming. Other experts noted that the steady rise in wholesale gasoline prices was bound to affect prices at the pump.
Retailers are reluctant to raise their prices for fear of losing business. Most gasoline stations make very little money on gasoline. It is the sale of other non-related items such as snacks, sodas, and cigarettes, etc. that allow them to be profitable. However, it had been a consistent period of several weeks that saw wholesale prices rising. This forced retailers to pass the price changes to the customers at relatively the same time. The price per liter is now $1.20. It is common for price hikes to occur on a Thursday as commuters gear up for a weekend of fun.
Retail prices had been steadily declining from the big spike that occurred this past May when the price per liter rose by 30 cents over a three week period. At the time, the average price reached $1.21 per liter. Simple supply and demand was blamed for the rapid increase in prices.
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App tips off Calgary drivers about gas price hike