Edmonton drivers could see gas prices drop even lower, analyst says
Price at the pumps go down another three to five cents in January, says GasBuddy.com
Gas prices at some stations in Edmonton dipped below 75 cents a litre on the weekend, and could go even lower before January ends, says Dan McTeague, a petroleum analyst at GasBuddy.com.
There are several reasons for the current low prices at the pumps, McTeague said.
First, the supply of gasoline is high and demand is low, because the winter has been mild and people tend to drive less in winter than in summer.
Several refineries in Canada and the U.S. that cut production in recent months are back to full capacity now, he said.
Gas prices in the U.S. have also dropped.
Since Canada doesn't always produce enough gasoline to meet demand, some supplies have to be imported from south of the border, McTeague said. That closely ties the Canadian market with the US. With gas prices falling in the US, that helps push the price down here as well.
The price of gasoline is closely tied to crude oil market. Oil has lost half its value over the past 18 months, McTeague said.
"I'm not complaining," said Qassim Abdulkadir, who was filling up his tank on Sunday. "I mean, a bit of good news for low oil prices for once. I guess, enjoy it while we can."
Drivers may get to enjoy things a little while longer. McTeague said the price at the pumps could drop another three to five cents in January, but he expects that trend to end sometime in February as refineries begin to ramp up for the summer driving season.
If the temperature suddenly drops and stays down, that would increase demand and push the price higher, he said.
Gas was selling in Edmonton at about 88.9 cents a litre in mid-December. The 2015 price peaked in mid-August at close to $1.20 a litre.