Gas Prices In Montreal Are Projected To Drop On Thursday
You should see a six-cent savings per litre.
A pump at the Costco gas station in Anjou.
Montrealers should wait until Thursday to fill up their gas tanks. Prices at the pump are expected to fall six cents in Quebec, according to Gas Wizard.
That will put the average price per litre of unleaded at $1.89. Gas prices have hovered around $1.95 per litre for the past week and a half.
The price of gas in the province is dependent on a number of factors, including increased demand, limited refining capacity, and geopolitical tensions.
Oil and refined gasoline are sold on the stock market, which means the slightest concern can lead to speculation and to increased prices. Geopolitical tensions, like the ongoing war in Ukraine for instance, represent a supply risk as Russia's oil and gas exports decline due to sanctions.
"Just the fear of not having enough oil makes the price go up," writes CAA-Quebec.
Over the past three decades, several refineries in North America have closed due to high operating costs. That has resulted in refining capacity falling behind the pace of oil production.
With current production at a maximum and oil reserves decreasing, it has become increasingly difficult for suppliers to meet demand and that will likely keep pushing prices up.
The Energy Information Administration (EIA) released a report on Wednesday about the status of petroleum south of the border. Crude oil inventories are 7% below the five-year average for this time of year, notes Gas Buddy. Gasoline production decreased to 9.3 million barrels per day, while fuel production decreased to 4.9 million barrels per day last week.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) announced Wednesday that production next month will fall to a much slower pace than in previous months.
This article's cover image was used for illustrative purposes only.
