Prowling the Pumps – October 21, 2008

Canadian Gasoline Prices

Average across Canada

Still dropping – 2.5¢ per litre this week to $1.044 per litre. Our hypothetical 80-litre tank was $2.00 less expensive to fill this week than last.

Gasoline prices slid everywhere except in the Yukon, where they stayed the same as last week. The steepest drop, 8.5¢ per litre occurred in Newfoundland and Labrador.

Overall, the average gasoline price in Canada has dropped 33.9¢ 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 $27.12 per litre less than it did only three months ago. The reasons remain the same – declining demand for gasoline and cheap oil.

Least Expensive Gasoline in Canada (per litre)

Last week was first since we began prowling the pumps that there is one city in the low-cost five where the average price of gasoline was less than a buck. And the prowler predicted there was “hope for the rest of us yet”. I don’t like to boast, but this week, all five cities averaged less than a buck, including two from Alberta. And all indications are that this trend will grow. Interesting to note both Kingston and Ottawa saw slight increases in price, as did many cities in Ontario.

Most Expensive Gasoline in Canada (per litre)

The least expensive city in the pricey five finally dropped below $1.20 per litre, and the next three were all well below $1.30 per litre. And believe it or not, prices are dropping faster than they rose.

Last week we noted that the price of WTI had dipped below $80.00 US per barrel for the first time since last year. Well, since last week, WTI dipped below $70.00 US per barrel, and that hasn’t happed since June 2007. Not even the potential for OPEC to reduce production had much of an effect. So the big questions now are How low will it go? and How fast will it turn around?

We’ll see what happens next week.

Pricing by Province

	Last Week	This Week	Change
BC	1.169	1.162	-0.007
AB	1.073	1.007	-0.066
SK	1.153	1.102	-0.051
MB	1.137	1.111	-0.026
ON	1.062	1.045	-0.017
QC	1.120	1.088	-0.032
NB	1.110	1.067	-0.043
PE	1.166	1.049	-0.117
NS	1.111	1.088	-0.023
NL	1.277	1.192	-0.085
YT	1.249	1.249	0.000
NT	1.369	1.329	-0.040