How much will gas cost this summer? Here’s what Canadians can expect
Global News
Gas Buddy is warning that while prices for gasoline have dropped the last week, recent decisions to cut the supply of oil could place upward pressure on prices.
As the summer approaches, Canadians may want to hit the road to enjoy the nice weather. But will gas prices agree with plans for a road trip?
The analytics website GasBuddy is warning that while prices for gasoline have dropped over the last week, recent decisions to cut the supply of oil could place upward pressure on prices.
“(The Organization of the Petroleum Exporting Countries) OPEC+ agreed Sunday to additional production cuts, while Saudi Arabia is going above and beyond and cutting July production,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a blog post.
“As a result, oil prices are likely to see upward pressure as global supplies, which have remained tight, promise to become even tighter.”
Gas prices have lowered since record highs last year when inflation was blazing hot and there was pent-up demand after two years of COVID-19 restrictions.
Demand has been lower this year, though, causing lower supply to not increase prices.
The average price in Canada is currently around $1.60 a litre, down about 50 cents from in 2022. However, prices are still above the average seen before inflation hit, which De Haan told Global News didn’t peak over $1.45 a litre.
“It is not a full return to normal,” he said. “Part of the reason why prices have not really rallied much this year is simply because of lack of a return in normal consumption.”