Canadians filling up their tanks ahead of the long weekend can expect to see reduced gas prices — a trend that has continued for much of the summer, experts say.
Nationally, the average price for regular unleaded gas stood at $1.56 per litre on Thursday, according to fuel price tracking website GasBuddy.com.
As of 1 p.m. eastern Thursday, prices were down by two cents a litre from last week, 8.4 cents compared with last month’s average and 13 cents lower from a year ago.
National gas prices will likely continue to decline through the Labour Day weekend, said Patrick De Haan, head of petroleum analysis at GasBuddy.
“We’ve seen a lot of downward pressure on prices as we approach the Labour Day long weekend. And that’s a trend that could continue through much of the fall,” he said in an interview with Global News.
Fewer oil refinery snags have contributed to relatively lower prices for gas and oil this summer, De Haan explained. The economic slowdown has also caused gasoline demand to become softer, pulling prices down.
Dan McTeague, president of Canadians for Affordable Energy and a former Liberal MP, said after the summer dip, he’s not expecting much change this long weekend.
“That’s been the story this summer,” he said in an email to Global News.
“Prices remained depressed relative to previous summers as energy markets are more interested in global economic sentiment and emotion rather than fundamentals which continue to show robust demand and dwindling supply.”
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Diesel prices in Canada have also decreased to the lowest national level since early 2022, currently averaging $1.67 per litre, De Haan said.
For those filling up their tanks, here is where prices stood in different parts of the country, as of 1 p.m. eastern on Thursday, according to GasBuddy.
- Alberta – $1.48 per litre
- British Columbia – $1.70 per litre
- Manitoba – $1.39 per litre
- New Brunswick – $1.60 per litre
- Newfoundland and Labrador – $1.69 per litre
- Northwest Territories – $2.06 per litre
- Nova Scotia – $1.62 per litre
- Ontario – $1.53 per litre
- Prince Edward Island – $1.67 per litre
- Quebec – $1.61 per litre
- Saskatchewan – $1.57 per litre
De Haan advised filling up sooner rather than later, in case there are any minor price fluctuations over the weekend.
“I think right now would be a good time to fill up,” he said.
Canadians paid 2.4 per cent more month to month at the pumps in July, putting upward pressure on overall inflation, according to Statistics Canada’s latest inflation report.
“Prices accelerated the most in the Prairie provinces, partially attributable to reduced supply amid a refinery shutdown in the Midwestern United States,” StatCan said.
Canadians travelling south of the border for the Labour Day weekend can expect to pay even less at the pumps than they would at home.
In the United States, the average price for regular unleaded gas on Thursday was US$3.35 per gallon, which is C$1.19 per litre, according to GasBuddy.
On Labour Day, the average price of gas in the U.S. is forecast to fall to US$3.27 per gallon, which is equivalent to C$1.16 per litre. That is the lowest Labour Day price for the U.S. since 2021, GasBuddy said.
De Haan said gas in the U.S. is not subject to carbon pricing like it is Canada, making it “much cheaper.”
With most of Canada switching to cheaper winter gasoline in the next few weeks, in addition to the falling demand as temperatures cool off, prices are expected to continue declining for much of the fall, De Haan said.
“By the end of the year, we could see prices that could be 10 to 20 cents a litre or more lower than where we are today,” he said.
However, there are “some wildcards,” like the tensions in the Middle East and the hurricane season, which could temporarily reverse the downward trend of gas prices, De Haan said.
“If we do see some additional violence in the Middle East, or if we do see a major hurricane heading into the Gulf of Mexico, those could lead to temporary price increases, but they should be temporary and fairly modest.”
© 2024 Global News, a division of Corus Entertainment Inc.
