Canada gas prices dropping: analyst

Canadian drivers could see some more relief at the pumps over the next couple of days.

Gas prices are going down, according to Paul Pasco, a principal consultant with Kalibrate, as evident by some figures posted at stations across the country.

This comes after regions nation-wide experienced record-highs over the past several months.

“It looks like we’re on a little bit of a downward trend. I don’t know how far it’s going to go. I don’t think we’re going to see a dramatic decline continue, but there’s been a little bit of relief as high prices have taken a bit out of people’s desire to drive and we haven’t see quite a ton of traffic,” he told CityNews.

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Pasco says the coming change in prices can be attributed, in part, to lower demand for fuel.

“We’ve seen a build in inventories, which is leading to a slight decline in prices,” he said. “I think you’re seeing just a little bit of declining demand. People are making that transition from discretionary travel to more necessary.”

While he foresees gas prices continuing to decline slightly in the short term, Pasco says things will remain relatively stable in the longer term.

“We do see some recessionary potential in the market that could pull it back a little bit further, but at the same time, battling that is the fact that there’s a tightness on the physical supply in the crude side. Crude isn’t falling as fast as some of the other commodities, just given that supply tightness that we’re seeing, due to the obvious — what’s happening in Russia. And deliveries haven’t quite been where they could be and there’s some concern as to whether or not OPEC can continue to open the taps a lot further than they already have.”.

Some provinces have taken measures of their own over the past several months to offer relief to drivers amid soaring prices. In June, the federal government hinted it wasn’t closing the door on the option of reducing gas taxes as Canadians continued to struggle.

“We’re going to watch the affordability challenges that Canadian families are facing very, very carefully. And we are prepared to do more, if necessary,” Finance Minister Chrystia Freeland said on June 20.

However, the federal government has taken no direct measures to address gas prices since.

Meanwhile, Pasco says exactly how much prices will drop in Canada over the coming days will depend on where you are. Some parts of the country have seen and will see bigger decreases than others.

“Some markets might be fortunate enough to see a bigger pull-back in diesel especially, just because it’s more closely linked to crude prices. But my long-term view is still staying pretty stable,” Pasco added.