Costco pumps lead to gas-price drop across Ottawa
The opening of a gas station by discount retailer Costco on Merivale Road has led competitor gas stations in Ottawa to drop their prices by two cents a litre.
Costco was selling regular gas for 116.9 cents per litre Wednesday, compared to 122.9 at most of its competitors.
On Thursday, the gap narrowed by about four cents as competitors dropped their prices.
The cheaper gas, however, is only available to Costco customers.
Driver Angela Savard said the savings are enough for her to make the trip.
"Well if you have a choice between going to Shell over there and coming to Costco here, you're going to come here," said Savard.
The Costco gas station has fewer amenities than other stations — there is no after-hours service, no windshield fluid, only two grades of gas and the machines don't accept credit cards.
Gas price analyst Michael Ervin of MJ Ervin Associates said providing gas will allow Costco to attract customers to its stores.
"They can afford to sell at a very low margin because they're attracting people to the merchandise store which generally is the area that provides the most profits," said Ervin.