Prowling the Pumps – October 14, 2008

Canadian Gasoline Prices

Average across Canada

An even bigger drop this week – 5.9¢ per litre to $1.069 per litre. Our hypothetical 80-litre tank was $4.726 less expensive to fill this week than last.

Gasoline prices slid everywhere except in Prince Edward Island, where they stayed the same as last week. The steepest drop, 9.9¢ per litre occurred in British Columbia.

Overall, the average gasoline price in Canada has dropped 31.4¢ 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 $25.12 per litre less than it did only three months ago. The reasons – declining demand for gasoline and cheap oil.

Least Expensive Gasoline in Canada (per litre)

This week makes the first since we began prowling the pumps that there is one, let alone two, cities where the average price of gasoline is less than a buck. Of course they’re Kingston and Ottawa. But there’s hope for the rest of us yet.

Most Expensive Gasoline in Canada (per litre)

Despite falling 20.7ȼ, since its peak, the priciest of the pricey five, at $1.369 per litre is still expensive. Think of it this way: despite dropping 20.7ȼ, it’s still higher than the least expensive gasoline ever rose since we started tracking gas prices.

It doesn’t look to us that the bail-out package has brought any stability to the markets. This past week, commodities, specifically oil, were hit hard, with WTI dropping to below $80.00 US per barrel for the first time since last year. Unless the markets reverse their current downward trend, the price of gasoline is headed down too.

We’ll see what happens next week.