Gas price drops below 70 cents per litre in Edmonton

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WATCH ABOVE: The price at the pumps had a lot of people talking Tuesday and not because it cost an arm and a leg to fill up. Shallima Maharaj has the details. – Jan 20, 2016

EDMONTON — If you’re looking for cheap gas, you’re in luck. Several gas stations in Edmonton dropped their prices below 70 cents per litre overnight.

According to the website, the Costco gas station on 149 Street was selling gas for 63.9 cents per litre Tuesday afternoon.

This is the lowest gas price Edmonton has seen in more than 10 years, according to the price-tracking website.

Gas prices in Edmonton over the last 10 years, according to Credit:

Several other Edmonton stations are selling fuel between 64.5 cents per litre and 68.4 cents per litre.

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Our neighbours to the south are also seeing some relief at the pumps, as gas prices in Calgary dropped to as low as 67.9 cents per litre Tuesday.

READ MORE: Calgary gas prices drop below 70 cents per litre

“All of the gasoline that we price, whether it is from British Columbia all the way to Thunder Bay, Ont. and everything in between, is based on what happens in the Chicago markets, and the upper U.S. Midwest refinery picture has been very poor over the past year,” petroleum analyst Dan McTeague said. “Demand has gone up and refiners there have not been able to adequately supply the market; they’ve been falling behind. That ended around Christmastime, and now they’re really catching up.”

McTeague said “the economics for crude are pretty simple.”

“There’s plenty of it, too much of it, no real demand; whereas gasoline is more of a finite market. It’s like comparing the cost of a new home versus the cost of lumber: yeah, you need one to build the other, but the total cost for the other is far greater.”

WATCH: Edmonton is experiencing the lowest gas price in more than 10 years, but Erin Chalmers explains why when you look at the bigger picture, the low prices aren’t a good sign.

Click to play video: 'Gas prices the lowest in a decade in Edmonton' Gas prices the lowest in a decade in Edmonton
Gas prices the lowest in a decade in Edmonton – Jan 20, 2016

In August, Edmontonians were paying approximately $1.20 a litre to fill up their tanks.

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With files from Erika Tucker, Global News.

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