When drivers go to the pump starting Tuesday they may see a significant decrease in the price of fuel with the federal government’s consumer carbon tax removed.
Head of Petroleum analysis with gasbuddy.com, Patrick DeHaan says drivers could potentially see up to a 17.6 cent decline in gasoline and a potential 23 cent decline in the price of diesel. However, he adds the price of gas and oil never moves because of just one reason.
“With the price of oil up some 3 per cent [Monday], it’s possible that Canadians may see part of that 17.6 cent drop that we expect in gasoline to be offset by [Monday’s] rise in oil prices,” DeHaan says.
According to DeHaan the average price for gas in Alberta on Monday was 152.2 cents a litre up 7 cents a litre from a month ago and 2 cents a litre higher than last year. He says this price is on par with what the rest of Canada is seeing, with seasonal factors such as the switch from winter to summer gas and outside factors such as the Canada and U.S. trade war impacting prices.
“A lot of the reason for the increase over the last month is seasonal. Canadians starting to drive more as temperatures warm up, that contributes to a rise in demand. Refineries are also beginning to do maintenance, or I should say are well in the process of doing seasonal maintenance before summer starts.”
“Seasonal maintenance is one of those necessary evils to make sure these facilities are able to produce as much gasoline as is needed during the summer.”
The removal of the consumer carbon tax is happening on the 10th day of the federal election and while DeHaan says the election itself won’t cause fluctuations in gas prices the outcome of the election could.
“Gas prices move for things that are immediately able to be anticipated. An election is simply not one of those things that would move the needle.”
“[Parties have] policy ideas, but depending on who wins the election, those policy ideas may not come true. So oil markets react on the known, what is certain, and the outcome of an election is anything.”
He adds the election comes at a tumultuous time with the potential for U.S. tariffs on Canadian oil and refined products and a trade war that could grow into something more significant.
