Less Than A Dollar For A Litre Of Fuel?

In the last few weeks, fuel prices have dropped significantly. In Quebec, it is currently around $1.21 per litre, but some fuel stations in the West will sell you the same amount for around 97 cents! According to analyst Dan McTeague, fuel prices could go even lower.

Yes, you read the last sentence correctly.

However, he would be surprised if Quebec saw prices drop under the $1.00 mark, since our fuel comes from Europe. The price per barrel is typically higher over there, compared to Canada’s west coast where they use oil from Alberta. We can expect fuel prices to drop to around $1.15, but no lower.

Why is gasoline so inexpensive right now? According to Mr. McTeague, there is currently an overabundance of oil. With a surplus of 2 million barrels per day, the supply is much greater than the demand.

However, it’s possible that prices will start to rise again soon enough: the comity that regulates oil exportation is scheduled to meet shortly to determine if the production capacity should be capped lower than it currently is. If that were to happen, demand would once again rise above the supply, and prices would soar.

In any case, enjoy the low cost of fuel: soon enough, we will have to take out a second mortgage to be able to afford a full tank.

Share on Facebook

More on the subject

NewsShell Lives In The Past: 39 Cents For A Litre Of Fuel
Do you remember the Eighties? The water was blue, skies were clear and gas was cheap (cheaper than it is now, at any rate). To celebrate 3 decades refining oil in Alberta, Shell decided to relive the glory days by selling their bronze-grade fuel at $0.399 cents a litre, just …
NewsThe USA Misses Its Hummers
This is a typical example of the American mentality: with the steady rise of fuel prices that we experienced in the last few years (decades?), lots of customers had to make choices when it came to their cars, and some of them were forced to drop their big and thirsty …
NewsNew Tax On Large Displacement Engine
Earlier this week, Quebec’s government surprised us by lowering the price of renewing our driver’s license: starting next year, we will pay around $65 less for the privilege of driving on our well-maintained roads. However, before running to the nearest shop to spend those saved dollars, you would be well-advised …
NewsNew Taxes On Our Car Insurance
Upon hearing the Quebec government's new economic measures, we were horrified, surprised and angered to hear that car drivers would pay more, again: there will be more taxes for engines over 4 litres, a 2-cent augmentation of the fuel tax and a one-time fee for vehicles with large powerplants. Another …
NewsAudi Now Makes Its Own Diesel
It seems that Audi is working on cleaning up the rap sheet of the most polluting car fuel. After building a research center for e-diesel (a renewable resource created artificially) last November, the Ingolstadt firm has announced that the very first batch of their green diesel (though it’s not green …
Comments