Senior petroleum analyst says lower fuel prices in PG provide little reason for celebration

Prince George drivers are getting some much-needed relief at the pumps as fuel prices have fallen under $1.70 per litre.

Most stations in the city, are at 169.9 cents per litre, while Costco remains the cheapest option to fill up at 162.9.

Canadians for Affordable Energy President, Dan McTeague told MyPGNow.com the price drop is due to some recent events across the pond.

“The COVID lockdowns (in China) have spooked energy traders who believe the largest importer of oil in the world will no longer be doing that and there is probably good reason but it doesn’t explain the entire story.”

“The other part of that is they are very concerned about demand disruption. The high prices we saw from February pretty much until July and August of last year explain why many believe that the price is too high and sooner or later people will soon abandon their vehicles.”

McTeague added while prices are in fact lower, it’s very little reason to celebrate.

“The reality is you are still up about 25 cents a litre when compared to the same time last year – that isn’t a lot when you consider the magnitude of what has happened geo-politically and that there is a significant increase in demand as people get back to normal one way or another post-COVID.”

McTeague also thinks local drivers should be in line for another price drop.

“The bottom line though is that I have been looking since the beginning of the month and the wholesale price for gasoline has dropped about 30 cents a litre. I have only seen a 15-cent a-litre decrease roughly in that so I think we are owed yet another decrease.”

However, McTeague expects gas prices to become very volatile heading into 2023 stating two dollars a litre will become the “new normal” by the spring.

“Especially after January and February. We do see a little bit of pullback but come February those prices are likely to go much, much higher. One would have to think, that what we saw last June is sort of a sample of what we can expect over the next several months.”