Fuel prices across southern Alberta continue vary greatly, with prices in Cochrane alone ranging from 93.9/L to 101.9/L on Aug.22.

For a gas station to buy fuel yesterday, it cost between 88 and 89 cents/L, overall wholesale prices for retailers have increased by 5 or 6 cents/L in the past couple of weeks.

Dan McTeague, GasBuddy Canada Senior Petroleum Analyst, says there is an explanation for the variation in pricing.

“When you’re seeing prices at 93.9/L at big box stores that has a lot to do with using gasoline as whats known in the industry as a loss leader, and that's really so you'll come in the store and be incentivized to buy other products that have a pretty significant profit margin,” he explains. “Many retailers who bought gasoline a week ago and are using the old price, but as they have to replace it with more expensive gasoline they're passing those prices on.”

McTeague believes the price of 101.9/L is not sustainable, as driving season winds down and refineries begin to make winter gasoline blends.

“I think you’ll actually start to see prices actually trend down a little bit, unless there is a refinery disturbance somewhere in the US. We’re heading to the end of driving season, that means demand is slumping. On Sep. 15 refineries convert to cheaper blends of winter gasoline, so that's a savings of another 3 or 4 cents/L, there really isn’t much in the cards here to support higher prices.”

Starting next week, McTeague expects fuel prices to be well below the 95.9 range for at least several weeks.