Canada: Canadians hitting the road this May long weekend won’t need to worry too much about a big jump at the gas pump before making their trip, but analysts say those hoping for a drop likely won’t see one either.
As of Thursday, the average gas price in Canada was about $1.625 to $1.639 per liter, with the numbers varying based on data from fuel price tracking websites such as GasBuddy.com and GasWizard.ca.
Patrick De Haan, head of petroleum analysis for GasBuddy, stated that several factors have contributed to the improvement in gas prices compared to the mid-April peak. This includes the transition from winter to summer gas, with refineries increasing output and the conclusion of the maintenance season, resulting in higher production.
“There could be some minor fluctuations, but at least for now, it looks like there should be broad relief,” De Haan said.
Despite some relief, GasBuddy mentioned in early April that there was “virtually zero chance that gas prices will ever fall below $1 per liter again.”
Gas prices vary depending on location. GasBuddy’s gas price tracker shows the most expensive cost in B.C., where people are paying about $1.897 per liter on average, compared to $1.599 in Ontario or as low as $1.415 in Manitoba.
Although the long weekend means more people on the road, Dan McTeague of GasWizard, who is also the president of Canadians for Affordable Energy, said current gas prices will reflect market conditions. He noted that Canada has seen a week-over-week decrease of about two to three percent, with a potential increase of $0.01 expected on Friday, followed by another similar jump on Saturday or Sunday.
GasWizard anticipates various changes, with Toronto expecting a $0.01 increase on Friday, Vancouver seeing a $0.02 drop, no change from the $1.549 in Saskatoon, and a $0.01 rise in Montreal on the same day.
What people need to watch for, according to McTeague, is how the markets react to the U.S. Memorial Day weekend next week, with the American Automobile Association predicting 38.4 million people on the road, the highest since 2000 for that holiday.
“That is likely to be very bullish for gas prices by this time next week,” McTeague said.
He added that the meeting of the Organization of the Petroleum Exporting Countries (OPEC) on whether to maintain production cuts may also influence prices. However, with oil prices having dropped in the past month, it’s unlikely they will adjust, which could be “very supportive” of gas prices in the next couple of weeks.
