Advertisement

Experts predict low gas prices in Alberta to be short-lived

Click to play video: 'Low gas prices not expected to stick around much longer for Albertans'
Low gas prices not expected to stick around much longer for Albertans
WATCH ABOVE: Plunging oil prices worldwide have delivered something of a Christmas miracle at the gas pumps. But Lethbridge drivers still pay among the highest prices in Alberta. As Kyle Benning reports, experts warn 2019 could be a volatile year to fill up the tank – Dec 28, 2018

With the holiday season coming to an end, Albertans looking to save some money in the New Year might be out of luck when filling their gas tanks. Experts are predicting the price of fuel to jump once again in 2019.

An analyst with GasBuddy.com explains drivers will have to prepare for what could be a volatile year when it comes to the price of oil in 2019.

“It’s more likely than not that you could be back to a $1.30 range here in Alberta perhaps as close as April, May and June,” said Dan McTeague, analyst with GasBuddy.com

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

Fuel prices in Alberta have dropped around 12 to 15 cents over the last year, which McTeague attributes to several different factors including low oil prices across the globe and a possible U.S.-China trade war.

Story continues below advertisement

McTeague said concerns surrounding oil-producing countries not living up to promises on production cuts could have also contributed to the current drop in fuel prices.

According to Gas Buddy, the average price in and around Calgary is just over 90 cents a litre, with lower rates in the capital region where Edmonton drivers can expect to pay around 89 cents.

However, the southwest city of Lethbridge is seeing no such luck, even with recent drops in price, residents can still expect to fork out more than a dollar per litre entering 2019.

“Retailers [in Lethbridge] don’t have any problems charging 15 or 16 cent retail margins,” said McTeague, who added part of the reason prices remain higher in Lethbridge is also due to a lack of competition.

McTeague said big box stores such as Costco may also help drive the direction of fuel prices within the city by changing their costs at a moment’s notice.

Advertisement

Sponsored content

AdChoices