Analysts predict a MASSIVE drop in gas prices in Vancouver this week
Analysts are predicting gas prices around Metro Vancouver could drop in a major way this week — bringing prices to below $2/litre.
Since early last month, fuel prices around the region have been steadily climbing for a number of reasons, including the maintenance of a refinery in Washington State.
But now, Dan McTeague with Gas Wizard is predicting a drop of $0.35 on Thursday.
Gas Wizard
Paul Pasco with Kalibrate agrees with the prediction, telling Daily Hive Urbanized he’s seeing something similar.
“I would expect prices to fall just below $2 overnight and with some luck there is room in the market for another 5 to 10 cents a litre before the weekend.”
Pasco told Daily Hive Urbanized that the Phillips 66 Ferndale Refinery in Washington State shut down for maintenance at a less-than-ideal time as Canada was already tight on supply. But that wasn’t the only reason.
“We are just seeing the refineries on the West Coast coming back up, there was almost 1 million barrels a day out last week at this time and it is all starting to come back online. So even though oil prices are up slightly the impact of increased demand is resulting in gasoline prices being able to fall,” says Pasco.
But Pasco says the same doesn’t hold true for diesel.
“Unfortunately global diesel markets are remaining tight and there is no immediate relief. Europe just began their turn-arounds in the last two weeks and with the strikes continuing in France, the demand for diesel is high. Prices there are not expected to fall in the same way. And relief is not on the immediate horizon, maybe some minor relief coming in mid-November as turnaround season in Europe comes to a close.”
Within the past two weeks, the region shattered an all-time North American record for gas prices several times.
Gas Wizard
Vancouver drivers continue to pay among the highest gas prices in Canada.
In Toronto, prices have been hovering around $1.67 per litre, while in Calgary prices are around $1.729 per litre.
Pasco expects we will see another jump in prices come November but says “it should not equate to much more than 5 cents per litre,” adding, “in the immediate future there is nothing on the horizon that should drive your prices back to the record highs that we just saw.”