Prowling the Pumps – October 8, 2008

Prowling the Pumps – October 8, 2008

Canadian Gasoline Prices

Average across Canada

Sometimes gradually, sometimes steeply, the decline continues. The average price of gasoline in Canada dropped for the fourth week in a row, this time by 5.2¢ per litre to $1.128 per litre. Our hypothetical 80-litre tank was $4.16 less expensive to fill this week than last.

Gasoline prices slid everywhere except in Newfoundland and Labrador, where they rose 0.4¢ per litre. The steepest drop, 11.2¢ per litre occurred in the Northwest Territories.

Overall, the average gasoline price in Canada has dropped 25.5¢ per litre since its all-time high of $1.383 per litre during the week of July 15. And this means that our hypothetical 80-litre tank now costs $20.40 less than it did only one week shy of three months ago. As the summer driving season comes to a close, the demand for gasoline subsides and with it, the constrain on supply. Consequently, prices decline.

Least Expensive Gasoline in Canada (per litre)

Same four cities in the low-cost five as last week, just some changes in positioning.

Most Expensive Gasoline in Canada (per litre)

As far as the pricey five go, it’s really the pricey six, with Corner Brook tying Whitehorse for fifth place. Otherwise, same players, different order.

Again, the big impact on gasoline prices, besides the end of the summer driving season, is the impact the global financial crisis is having on the price of oil. Last we though things would stabilize once the bail-out bill was passed, however, that seemed to lead to even more uncertainty. Will it have the desired effect? Is it enough? How long will it take? And as we’ve all heard a million times over the past three weeks, the market hates uncertainty. So investors sell off and the first things to lose their shine are commodities. Consequently, the price of oil has dropped below $90 US per barrel.
Our big question last week as “What will happen to gasoline prices once the bill is passed?”

Well, they dropped.

We’ll see what happens next week.

Pricing by Province

	Last Week	This Week	Change
BC	1.315	1.268	-0.047
AB	1.198	1.158	-0.040
SK	1.262	1.240	-0.022
MB	1.232	1.196	-0.036
ON	1.164	1.119	-0.045
QC	1.258	1.191	-0.067
NB	1.203	1.191	-0.012
PE	1.223	1.166	-0.057
NS	1.236	1.204	-0.032
NL	1.331	1.335	0.004
YT	1.399	1.309	-0.090
NT	1.534	1.422	-0.112