New Brunswick gas prices may hit lowest level in 7 years

New Brunswick drivers are getting ready for what could be the lowest pump prices in seven years as gas prices are expected to tumble by five cents a litre on Thursday.

Energy and Utilities Board may cut the regulated maximum gasoline price by 5 cents a litre on Thursday

Gasoline prices may be about to hit record lows in New Brunswick. (AP)

New Brunswick drivers are getting ready for what could be the lowest pump prices in seven years as gas prices are expected to tumble by five cents a litre on Thursday.

The regulated maximum pump price in the province is 93.1 cents a litre, but CBC reporter Robert Jones said the Energy and Utilities Board may cut gas prices by as much as five or six cents on Thursday.

A drop of that measure would put the maximum price below 90 cents a litre for the first time since April 2009.

The maximum pump price fell as low as 68.8 cents in 2009 before it began moving back up.

The falling pump prices are being welcomed by drivers across the province.

Christina Crosman drives from her home in Sussex to Moncton a couple of times a week. For her, the prices are welcome and something she's never seen before.

"I'm not quite 25 yet, so it's definitely not been that low since I've been around," she said.

With gas prices expected to drop on Thursday, some Moncton gas retailers have already dropped their prices. (Suzanne Lapointe/CBC)
"We normally spend about $250 in gas every two weeks so this will give us a little extra to do stuff with the kids, or to spend extra on groceries or anything."

Jan Steeves is also in her car a lot during the day. Steeves commutes more than a half an hour each way to her job and she also drives for work. 

And if the prices do hit a seven-year low, she said that will leave a lot of money in her wallet.

"It'll be nice to see that I'll be down in the $40-range to fill my tank instead of the $60-range," she said.

New Brunswick began regulating the maximum price of gasoline in 2006.

The Energy and Utilities Board sets maximum prices every Thursday based on the average prices of commodity trading on the international markets during the previous week.

Retail stations are allowed to sell gas for less than the maximum prices.

While consumers may appreciate the low gas prices, retailers aren't always as thrilled.

Lyle Hogan, the owner of Lyle's Service Centre, a Moncton gas station, has been in business for 45 years. He said the drop in prices isn't great for him.

"Last week, now, for example, I bought gas and I paid top price for it. And this week it'll drop. I'll probably lose money," he said.

This chart shows the regulated maximum pump prices since 2009. The red line represents gasoline, blue is diesel, green is propane and grey is furnace oil. (CBC)


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