EASING OF THE GAS: Pump price skids to lowest point in year
'I would expect that we have four or five good weeks. It’s an early Christmas gift': Dan McTeague, Canadians for Affordable Energy.
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Plummeting gas prices have become what one energy analyst calls an early Christmas present.
But they might be short-lived.
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Thursday’s gas price across the GTA averaged just under $1.39 a litre.
“I would expect that we have four or five good weeks. It’s an early Christmas gift,” Dan McTeague, president of Canadians for Affordable Energy, said Thursday.
“Take advantage of it while you can, because – considering where we were in the first week of June – it’s an 80 to 85 cent savings per litre.”
Friday is also expected to be smiling on drivers as they gas up.
Prices are expected to decline another three cents – down to an average of about $1.36 a litre.
This is in contrast to the price about a month ago, which was about $1.74 a litre.
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McTeague said much of the decline is due to the price of oil dropping to about $72 a barrel on the world market – something he does not expect to last.
“Come the second or third week of January – watch out,” he cautioned. “I don’t think OPEC is going to sit on the sidelines allowing its product be trashed financially.”
A senior director of public affairs at CAA says the national gas price average has dropped by about 30 cents since last month, but the price has not fallen as low as the 136.5 cents average that was recorded on Dec. 9, 2021.
CAA senior director of public affairs Kristine D’Arbelles said – similar to McTeague – that gas prices are expected to remain relatively low in the next couple weeks before they might go up again due to higher demand during the holidays.
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In the last official glimpse at inflation in Canada, gasoline prices increased 9.2% month over month in October following a decrease in September 7.4%.
Statistics Canada said at the time “the announcement of future oil production cuts by the Organization of the Petroleum Exporting Countries plus a weaker Canadian dollar contributed to higher gasoline prices for Canadian consumers.”
McTeague said OPEC will likely keep manipulating supply to its advantage, but he still sees an easing to price pressure at the start of the year.
“Inflation rates in Canada come January – mark my words – are going to drop precipitously taking off pressure by the central bank to continue raising rates.”
As Canadians gas up this week, the clock is ticking to the next look at inflation, which is due Dec. 21.
Twitter: @_ScottLaurie
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