Gas prices dropped eight cents a litre on Wednesday in the Greater Toronto Area and most of southern Ontario but they are set to dip a little further, according to an analyst.
The price of gas on Wednesday dipped to $1.629 a litre.
Dan McTeague, president of Canadians for Affordable Energy, said if drivers can wait to fill up Thursday it is projected to see another one or two cent drop.
“We’re looking at a penny or maybe a two-cent further decrease come Thursday. If you don’t like a $1.629 at the top end wait until Thursday for a $1.619 or maybe even $1.609,” McTeague said.
“That’s a price we haven’t paid in over two months.”
The last time prices were this low for gas was in mid-July.
However, McTeague notes this time last year, drivers were paying $1.459 on Sept 20, 2022, which he says is a bigger concern as the rate of inflation in the country rose to four per cent announced by Statistics Canada on Tuesday.
“That’s still 17 cents higher than last year,” McTeague said.
He also said a partial reason for the drop is the switch from the summer blend of fuel to winter gas even though the price of oil is up.
The other partial reason, McTeague said, is a shortage of diesel.
“Refineries are running overtime trying to produce more diesel because you can’t turn a switch on or off. As you try to use more barrels of oil to make more diesel, you are also as a consequence producing a lot more gasoline. So it’s a bit of a glut on the gasoline side and a bit of advantage for consumers.”
McTeague said the dip this week is a “short-term gain” as he expects gas prices to increase by mid-October.
Comments