Metro Vancouver gas prices set to drop again this week
Posted November 17, 2022 9:34 am.
Last Updated November 17, 2022 9:35 am.
Gas prices around the Lower Mainland are about to slide for the third time this week.
One industry insider says prices are expected to drop by another four to six cents Friday morning, meaning the average for a price of regular could move into the 175.9 to 176.9 range.
Prices haven’t been that low since the beginning of the year.
“Refinery pressures are gone and crude is taking a break at the moment,” explained Paul Pasco, principal consultant with Kalibrate. “So prices should mellow for a few weeks and then there is a bit of unknown for the start of December. Right now it looks ok but with Russian sanctions there are dynamics.”
On Monday, gas prices dropped nearly 15 cents in parts of the region, followed by another decline of about 10 cents.
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While Pasco foresees some uncertainty to start December, he doesn’t think any changes will be “sudden.”
“But that is when Russian sanctions on crude hit. We are already seeing India decrease their purchasing volumes of Russian crude (they cannot find tankers) so supply could tighten a little bit. And China has not changed COVID policies yet or indicated that they will, so demand is remaining low. Chinese refiners are back up and running and no longer stock-piling crude either,” he wrote in an email to CityNews.
“So chance for crude markets to stabilize if we hit a recession as forecast and China maintains their policy. But it is still a balanced market any bad news and we can watch prices change almost immediately.
“December is a question mark for me, right now I think we will stay around $1.80 for yourselves in to the New Year but that is contingent on things in the world relaxing for a month,” he added.
Pasco says the Metro Vancouver region, which often sees the highest gas prices across the country, is now “back in line” with the rest of Canada, adding the regions is where it “should be.”
