Pump prices lower than expected for Canada Day drivers
By Matthew Black, CBC News
Posted: Jun 29, 2012 4:16 PM ET
Last Updated: Jun 29, 2012 4:14 PM ET
Pump prices plunged noticeably on Friday, just before the Canada Day long weekend.
Gas prices across the country dropped sharply Friday, ahead of the Canada Day long weekend and contrary to widespread expectations.
At 121.3 cents for a litre of gas, the national average price on Friday was at its lowest since January, according to the gasbuddy website. That's well down from the 140-cents-a-litre spike that motorists saw just ahead of the Easter weekend.
Prices in major cities across the country ranged from a low of 109.4 cents a litre in Edmonton on Friday to a high of 137.6 in Vancouver. Toronto was averaging 117.2, Halifax 118.1 and Montreal 130.7.
Jason Toews, co-founder of the gasbuddy site, pointed to a drop in crude oil prices as the major reason for the lower than expected cost of fuelling up.
"There's a lot of downward pressure on the price of gasoline even though it is a big driving weekend," he said. "That's good news for drivers. We're getting a little bit of relief at the pumps."
That relief, of course, is relative. Data from the same website shows that at this time last year the national average price stood at 121.7 cents per litre. But it had been spiking highward since.
However, at least one industry analyst says drivers shouldn't be that surprised.
"Historically we don't see pump prices going up before a long weekend," said Michael Ervin, the president of MJ Ervin and Associates.
"The incidents of pump price changes before a long weekend are no different than for any other weekend throughout the year."
Ervin added that the wholesale price of refined gasoline, as well as retail policies and government taxes all influence what gas stations charge.
But, both Ervin and Toews agree that drivers should anticipate lower costs for fuel throughout the summer driving season than what had been previously predicted.
"This year, the industry sailed through without any tightness of supply because of lower demand," said Ervin.
"When we hit Labour Day or thereabouts demand for gasoline will fall even more. So, there's no real reason to expect pump prices to be going up between now and Christmas."
Share Tools
Top News Headlines
- Senator Pamela Wallin leaves Conservative caucus
- Senator Pamela Wallin says she is recusing herself from the Conservative caucus while her travel expense claims are under scrutiny. Wallin's departure comes one day after Senator Mike Duffy left the Tory caucus amid controversy over his expense claims.
more »
- Toronto Mayor Rob Ford denies crack cocaine allegations
- Toronto Mayor Rob Ford says allegations he was caught on tape smoking crack are "ridiculous," following reports that someone had been trying to sell a purported recording of such an event to U.S. and Canadian media outlets. more »
- Sailor fighting cancer says AWOL charges dropped
- All charges against a Nova Scotia woman in the Royal Canadian Navy who is fighting cancer, and who was charged with being absent without leave and facing a court martial have been dropped, the woman and her lawyer say. more »
- 12 young leaders changing Canada in this week's Generation Why
- If the number of young entrepreneurs and innovators in Canada is any indication, the generation that came of age alongside the modern web is ready to rethink everything. Meet 12 young people our readers nominated as the most dedicated, impressive, creative and intelligent Canadians under the age of 30 they know. more »
- Should genetic testing for cancer be available to all Canadians?
- The revelation that Hollywood celebrity Angelina Jolie had a double mastectomy as a preventative measure against cancer stoked heated discussion this past week, but one prominent cancer researcher says it demonstrates the need to make genetic testing available to all Canadians. more »
Must Watch
Latest Canada News Headlines
- Should genetic testing for cancer be available to all Canadians?
- The revelation that Hollywood celebrity Angelina Jolie had a double mastectomy as a preventative measure against cancer stoked heated discussion this past week, but one prominent cancer researcher says it demonstrates the need to make genetic testing available to all Canadians. more »
- Lawyer says RCMP refuses to mediate harassment suit
- A lawyer representing 300 women who worked for the RCMP alleging harassment and gender-based discrimination in a lawsuit says the national police force is declining an offer to mediate. more »
- Duffy's Senate expenses may get 2nd look from auditors
- Senator Mike Duffy's expenses may get a second review by independent auditors following media reports regarding expenses he claimed while campaigning for Conservative candidates during the last election. more »
- Toronto Mayor Rob Ford denies crack cocaine allegations
- Toronto Mayor Rob Ford says allegations he was caught on tape smoking crack are "ridiculous," following reports that someone had been trying to sell a purported recording of such an event to U.S. and Canadian media outlets. more »
The National
The Current
- Why thousands of people want a one-way trip to Mars May. 17, 2013 4:08 PM Nearly 80,000 people are eager to blast off on a one-way colonizing mission to Mars - but some experts believe no one is likely to get off the ground.
- Senator Pamela Wallin leaves Conservative caucus
- Toronto Mayor Rob Ford denies crack cocaine allegations
- Tim Bosma public memorial Wednesday in Hamilton, Ont.
- Dennis Oland named as prime suspect in father's slaying
- Public raising funds to buy alleged Rob Ford crack video
- Sailor fighting cancer says AWOL charges dropped
- Milwaukee bar wins overturn of bra ban
- 2 earthquakes felt in Ontario and Quebec
- Lawyer says RCMP refuses to mediate harassment suit

