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Metro Vancouver gas prices sink below $2 for first time in months

The Bank of Canada's strategy to tame inflation by raising interest rates could backfire, according to a new study by the Canadian Centre for Policy Alternatives. Global News Morning speaks with Senior Economist David MacDonald. – Jul 6, 2022

It’s a bird. It’s a plane. It’s gas for under $2 in Vancouver — but it may not last long.

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“You’re seeing prices, literally, that you have not experienced since at least the 15th of April, so now we’re at or below the $2 threshold — something I didn’t think we’d be so willing to celebrate,” president of Canadians for Affordable Energy and petroleum analyst Dan McTeague told Global News.

The price of regular fuel fell to $1.99.9 in Vancouver on Friday, the result of a $5 to $6 drop in the price of a barrel of oil two days ago, McTeague said.

That price drop is the result of market jitters over rising interest rates and their potential to spur a recession, McTeague said.

But McTeague said motorists hoping to take advantage of the cheaper fuel will want to act before Saturday, when he forecast prices would rise by as much as five cents.

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“This is probably as good as it’s going to get,” he said.

“After that, hard to say, because I think markets are in a bit of a tug of war, those who believe we are going to a recession versus those who believe that the reality is the supply situation for gasoline and diesel and to a lesser degree oil continues to be very tight means that prices need to go up, not down.”

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