Canadians for Affordable Energy president Dan McTeague is expecting some relief at the pumps for Prince George drivers.
Earlier this week, Iran and the United States agreed to a two-week ceasefire in their conflict, which has inflated gas prices in Canada and the United States.
McTeague told MyPGNow.com there was a significant correction in the market a couple days ago, signaling a deal between the two countries might be in the works.
“The refinery in your backyard in Prince George knows there is a drop of about 13 cents a litre at the wholesale level. It’s going to get passed down to everyone so that you are no longer paying as high as 218 or 219 for fuel.”
“What is critical for people to understand is that there was a correction in the market as of two days ago as a result of potential of a ceasefire as fragile as it is. It had markets more confident and that there could be a deal to alleviate the continued drag in supply.”
McTeague anticipates diesel prices are expected to drop by about 25-cents a litre while regular fuel is anticipated to dip to the dollar-seventy range as soon as tomorrow (Saturday).
“There is no point of a lag in keeping these prices up because you happen to have expensive inventory in your tanks. The realty is that even though you had cheaper inventory in your tanks, it works the other way also. In order to be fair to consumers, I would expect that tomorrow (Saturday), we should be seeing the equivalent of a 13-cent-a-litre decrease in gas prices and a dip of about 25 or 28 cents for diesel.”
“It’s not just Iran that is affected. It’s all the neighbouring countries too as Iran has said if we are going down, we are taking others with us – they targeted Saudi Arabia, Bahrain, the United Arab Emirates, Qatar, Kuwait and Iraq. You name it everyone has been fired upon and I think those Gulf states are ticked off with this. In the meantime, it has resulted this massive supply shortage of oil around the world,” added McTeague.
Most gas stations in PG remain at 183.9 cents per litre while Super Save Gas on Continental Way has the cheapest price at 166.8.
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