Image Credit: CFJC Today

By James Peters / Ashley Legassic

Gas Prices

Here’s why Canada’s leading gas price watcher thinks drivers may soon catch a break

Jul 13, 2019 | 10:05 AM

KAMLOOPS — Canada’s leading gas price watcher says there are a few positive factors working in favour of drivers this summer.

But Senior Petroleum Analyst Dan McTeague of GasPriceWizard.com says longterm forecasts for the industry have many moving parts.

McTeague says one factor giving him hope is that Hurricane Barry, currently bearing down on Louisiana, hasn’t had a major impact on refineries around the Gulf of Mexico.

“[Wholesale price behaviour] all depends on U.S. demand [and] it all depends on meteorological events,” said McTeague. “There were a number of interviews I did (Friday) with people concerned that the hurricane… in the U.S. Gulf Coast would affect refineries there and therefore prices would go up. That didn’t happen and it’s not likely to happen.”

The Canadian dollar has rallied recently, and McTeague says that also helps Canadians get the most bang for their bucks.

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“We have a little bit more purchasing power. Usually, 135 pennies bought you a U.S. dollar; today, it’s about 130. That increases the purchasing power of most drivers, so you’re probably to the better by at least a-penny-and-a-half to two cents-per-litre,” noted McTeague. “It may not sound like much, but if the Canadian dollar remains relatively strong, it means the summer could be a lot cheaper than most had bargained for.”

With that in mind, McTeague says geopolitical factors may play a larger factor in Canadian gas prices in the weeks to come.

“The rest of the summer could feature heightened tension between, say, Iran and many other countries in the Persian Gulf. We could see positive or negative news on the trade side with the U.S. and China. If it positive, prices would go up; if it’s negative, prices will fall.”

Many Kamloops gas stations have set their prices around $1.31 per litre of regular unleaded this weekend. McTeague says those stations aren’t making much money on gasoline, but stations setting higher prices will have a hard time competing.