Long weekend drivers will benefit from cheaper gas as crude oil drops

Long weekend drivers will benefit from cheaper gas as crude oil drops
Long weekend drivers will benefit from cheaper gas as crude oil drops

The last long weekend of summer will also be the cheapest for Canadian drivers, with gas prices heading into the Labor Day holiday the lowest since late February.

The national average retail price for regular gasoline on Thursday, according to Natural Resources Canada, was 161.1 cents per litre. The last week of February, just before the effects of Russia’s February 25 invasion of Ukraine began to be felt at the gas pump, the last time Canadians saw the average price of gasoline gasoline to be around $1.60.

Gasoline prices rose steadily thereafter, peaking at 215.1 cents per liter in early June. It was costing drivers more than $2 a litre, on average, to fill up before the Canada Day long weekend, and the August civic holiday wasn’t much better with average prices for l order of 180 cents per litre.

But prices have been falling steadily since August, partly because of lower crude oil prices and also because of declining refining margins in the United States. On Friday, the U.S. October crude contract was trading at US$86.61 a barrel, its lowest level since late January.

Vijay Muralidharan, managing director of R Cube Consulting Inc., said what happened is a form of demand destruction. Soaring inflation in the United States, the world’s largest gasoline market, has forced some drivers to cut fuel consumption. And with many economists speculating on the possibility of a global recession, oil traders are getting nervous.

“The war in Ukraine added a 15 cent per liter premium to gasoline prices at its peak,” Muralidharan said. “Now that bounty is dissipating somewhat. Not because the war is ending, but because of fears of demand. There is a lot of pessimism in the oil markets right now.”

Muralidharan said he believed prices could be maintained at the current level, but if members of the Organization of the Petroleum Exporting Countries decided to increase crude production in response to lower prices, it would again drive up the cost of gasoline.

Although gasoline prices have fallen across the country, the cost of fuel varies significantly from region to region due to factors such as transportation costs and local taxes.

According to fuel price tracking website GasBuddy.com, British Columbia has the most expensive gasoline ahead of Labor Day weekend, averaging 185.0 cents per liter.

The cheapest gasoline is in Alberta, where the average is currently 140.8 cents per litre.

This report from The Canadian Press was first published on September 2, 2022.

. drivers long weekend will enjoy dune petrol less expensive so oil crude fall

. Long weekend drivers benefit cheaper gas crude oil drops

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