Gas war in Vernon

UPDATE: 1:49 p.m.

Gas prices in Vernon continue to drop. Some stations are advertising 112.9 at the pump.

"It is definitely a gas war. And, it is definitely below cost." 

A senior petroleum analyst with GasBuddy.com Dan McTeague says stations in Vernon are losing as much as nine cents per litre at the pumps. 

"It cost them a $1.22 to buy their fuel today ... Go there because they are giving you money," says McTeague with a chuckle.    

McTeague says it comes down to market share. Gasoline stations tend to do very well year over year if they can keep up their volumes. 

"In other words, the amount of gasoline they can push through gets them greater discounts, generally, over the year. If you can get a few days when you are ahead of the competition you can start to steal market share, and you are going to get a bigger discount from your supplier." 

McTeague says it is Canadian Tire and Super Save Gas who are driving this war.

 "So, obviously, they have deep pockets or a very friendly supplier who will spot them the loss until the war is over, or they are selling a lot of potato chips and oil filters."

On Friday drivers woke up to gas sitting at 124.9. The price has been steadily dropping ever since.

ORIGINAL 10:55 a.m.

Gas prices in Vernon, as of Tuesday morning, were among the lowest in the province. 

On Friday morning drivers woke up to find the price at the pump sitting at 124.9. 

The price steadily dropped throughout the weekend, and on Tuesday morning gas was sitting at 114.9 at some stations in Vernon. 

"It was 132. in Kelowna," one driver said. "Well worth the drive to Vernon."

"I am definitely loving the gas war," said another driver. "We were down at the coast this weekend and prices are a lot higher there."

Depending on which gas station you decided to fill up at, the price at the pump in Vernon ranges from 120.9 to 114.9 per litre.