Metro Vancouver motorists shouldn't count on gasoline prices falling too much further

Gasoline price drop nearly done for B.C. motorists: analyst

Plunging crude oil prices thought to be near bottom, leaving little room for more pump price relief

A petroleum industry expert says plunging crude oil prices may be close to a bottom, meaning B.C. motorists shouldn’t expect gasoline prices to fall much further.

Metro Vancouver gas prices averaged $1.19 per litre Wednesday, down 17 per cent from their mid-summer plateau of around $1.42.

Jason Parent, vice-president of consulting for MJ Ervin and Associates, said there may be room for gasoline prices to drop a little more at the pumps as a result of crude’s fall, but not a huge amount.

Jason Parent“We’re talking two or three cents,” Parent said. “Generally I see retail gas prices hovering around where they are right now – plus or minus five cents – and then creep up a little more in the spring.”

Crude oil had run at more than US $100 a barrel for the first half of the year before falling 35 per cent to less than $70.

Crude’s decline turned into a nose dive last week when the OPEC cartel announced it wouldn’t cut production to prop up oil prices, creating the spectre of a global supply glut and protracted low prices that could force some energy firms out of business.

Some analysts have suggested crude oil could fall as low as $30 a barrel.

“I just don’t see that,” Parent said. “I’m of the opinion that while we may not be at the  bottom in terms of crude prices, I think we’re getting pretty close to that range.”

Parent said it would take an “epic” drop in the price of crude below its current level for gas prices to drop below $1 a litre, particularly in Metro Vancouver, where TransLink’s fuel tax adds 17 cents.

“You guys are taxed more than anyone else in the country,” he said.

Parent said gasoline prices in Canada haven’t fallen as much as in the U.S. because of the decline in the Canadian dollar against the U.S. greenback.

Vancouver Historical Gas Price Charts Provided by GasBuddy.com

Just Posted

Parks and playgrounds getting upgrades in Mission

Some areas have been waiting years, but district vows to get to them eventually

Local ballet students selected for top schools

Twelve successfully audition from Fraser Valley Academy of Dance

BREAKING: Clearbook Library evacuated due to bomb threat

Abbotsford Police continuing to investigate for remainder of the day

‘Beauty amongst such tragedy:’ B.C. photographer captures nature’s trifecta

David Luggi’s photo from a beach in Fraser Lake shows Shovel Lake wildfire, Big Dipper and an aurora

Air quality advisory continues in the Lower Mainland

Smoke from Interior fires brings fine particulate

Canadians fear for relatives trapped amid flooding in Indian state of Kerala

More than 800,000people have been displaced by floods and landslides

IndyCar driver Wickens flown to hospital after scary crash

IndyCar said Wickens was awake and alert as he was taken to a hospital

Ex-BCTF president ‘undeterred’ after early release from pipeline protest jail term

Susan Lambert and Order of Canada recipient Jean Swanson released early

Fast food chains look to capitalize on vegetarian, vegan trend with new items

Seven per cent of Canadians consider themselves vegetarians and 2.3 per cent identify as vegans

B.C. swimmer halts journey across Strait of Juan de Fuca after hypothermia sets in

Victoria MS athlete Susan Simmons swam for eight-and-a-half hours in 9 C choppy waters

‘Hard on water:’ Smoke not the only long-range effect of wildfires

The project began more than 10 years ago after southern Alberta’s 2003 Lost Creek fire

B.C. VIEWS: Genuine aboriginal rights are misused and discredited

Camp Cloud one of long line of protests falsely asserting title

Prime Minister Justin Trudeau to march in Montreal’s Pride parade

Trudeau will end the day in his home riding of Papineau

Most Read