Advertisement

Toronto-area gas prices set to fall 10 cents amid oil price drop, COVID-19: analyst

Click to play video 'Stock markets halted amid oil price war' Stock markets halted amid oil price war
WATCH ABOVE: A battle between oil producing countries resulted in the global markets plummeting Monday morning. Kamil Karamali reports.

A petroleum analyst says gas prices in the Toronto area will see a drop of approximately 10 cents on Wednesday amid a recent plunge in oil prices and the ongoing outbreak of COVID-19.

Roger McKnight, senior petroleum analyst with En-Pro International, said as of 12:01 a.m. prices are expected to drop to an average of 92.9 cents per litre in the Toronto area — down from 102.9 cents per litre.

He said some stations will have prices even lower than 92.9.

READ MORE: Coronavirus: How is the COVID-19 outbreak affecting gas prices in Canada?

McKnight said the collapse of an oil supply cut agreement between Saudi Arabia and Russia, coupled with the uncertainty and less demand for oil amid the COVID-19 outbreak, will result in the decrease.

Story continues below advertisement

“This is an astronomical drop,” McKnight said.

[ Sign up for our Health IQ newsletter for the latest coronavirus updates ]

“I’ve been doing this for over 20 years, I’ve never seen a drop of 10 cents — ever.”

Click to play video 'Wall Street stock markets plunge, resume after trading halt amid COVID-19 outbreak,' Wall Street stock markets plunge, resume after trading halt amid COVID-19 outbreak,
Wall Street stock markets plunge, resume after trading halt amid COVID-19 outbreak,

He said he expects the trend to extend beyond the Toronto area as well.

“It’s going to be a general decrease right across the country between seven and 10 cents,” McKnight said.

As oil prices fell 20 per cent, stocks throughout North America also plummeted on Monday. The TSX closed down 10.3 per cent.

— With files from the Associated Press