Gas prices across much of Canada could reach $1.00 per litre or below as early as this weekend, marking the lowest prices at the pump in five years.
According to GasBuddy.com, many pumps in Calgary today are hovering just below or above the loonie, with some gas stations reaching a low of $0.939, while prices in Ottawa are lingering just above the $1.00 mark.
In Edmonton, virtually all pumps are now priced under $1.00 per litre and some stations have eevn dipped to a low of $0.899.
An oversupply of oil and gas is causing global crude oil prices to plummet to new lows. This morning, after months of gradual declines, crude prices sunk below the US$70 mark for the first time since May 2010. Prices are expected to continue tumbling in the weeks to come.
Canada and the United States are responsible for the latest dips in the price after their crude inventories were released, effectively bringing the global surplus of oil to two million barrels per day.
In addition, vehicles are now more fuel efficient and refineries have switched over to producing less expensive winter-grade fuels.
While other parts of Canada will see gas prices dip below the $1.00 barrier, the same cannot be said for Vancouver.
Prices on the West Coast have declined significantly since the summer peak of $1.50 per litre, but it is still hovering well above the loonie with most gas stations selling at prices of approximately $1.20.
High gas taxes totalling 32.17 cents per litre, the second highest in Canada after Montreal, have inflated the cost of fuelling up in Vancouver. This includes GST, PST, a 15 cent transit tax and carbon tax of 6.67 per litre for gas.
Elsewhere in Canada such as Montreal and Halifax, the prices in these centres are also far from reaching at par with the loonie. High fuel taxation in both jurisdictions have also kept prices inflated, at about $1.15. Montreal’s gas taxes are the highest in the country at 49 cents per litre.
In Toronto, depending on the location, it currently costs anywhere from $1.06 to $1.14 per litre.
Feature Image: Gas pump via Shutterstock