One of Canada’s leading gas price experts warns prices will not dip below $1.00 per litre for the forseeable future.
Gas Buddy Senior Petroleum Analyst Dan McTeague told AM980 that the gas price hike this week has brought–expected to further rise to almost $1.08 per litre at most London gas stations by Saturday morning–will dip back down, but not below the dollar mark, at least for now.
“You’ll see another increase at the pumps, although it won’t be five cents per litre. It will be two cents,” he said. “London has a market where a lot of retailers are trying to compete with Costco and other large big box stores, so what happens in the morning usually changes rather dramatically–they drop about 10 cents a litre–by the afternoon.”
Prices in London–and across the province–saw an uptick this week, following an agreement by Organization of the Petroleum Exporting Countries (OPEC) nations to cut production output for the first time in eight years.
The price of crude oil rose swiftly, prompting an overnight increase in fuel prices of about five centre per litre. McTeague said this isn’t typical for December.
“The wholesale price has gone up mostly because speculators have driven up the price of gasoline by roughly 16 cents a gallon–works out with the Canadian exchange to about six cents a litre,” McTeague said. “That’s really what’s driving the prices up at a time of the year when we tend to see prices become a little bit more moderate.”
Crude oil increased by 62 cents to $51.68 USD per barrel Friday afternoon, pegging benchmark oil prices at their highest since mid-October.