Gas prices to rebound this week after biggest single-day drop in more than a decade (analyst) – .

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Gas prices to rebound this week after biggest single-day drop in more than a decade (analyst) – .


Ontario gasoline prices are expected to rebound this week after the biggest one-day drop in more than a decade.

The average cost of a liter of gasoline fell 11 cents to $ 1.349 per liter on Sunday as global markets faltered following news of a new variant of COVID-19 detected in South Africa.

But gas analyst Dan McTeague, president of Canadians for Affordable Energy, told CP24 he expects the savings to be short-lived.

In an interview on Monday, he said he now expects the price of gas to rise by three cents per liter from Wednesday morning.

The good news, at least for drivers, is that McTeague thinks gasoline prices are unlikely to rebound as high as $ 1.459 per liter just yet, as the Omricon variant continues to create “a little bit of money.” ‘instability in the world’.

“The market overreacted. A lot of senior players and traders are realizing that the drop in oil and gasoline prices in the markets was a bit exaggerated and so we are going to see a slight correction but not until Wednesday, ”he said. . “So you can enjoy prices today and tomorrow of $ 1,349 or less here in the GTA and much of the province, but on Wednesday, or of course, we’re going to see gasoline prices go up. “

McTeague said the 11-cent drop in the average gasoline price was the biggest one-day price drop in Ontario since January 2009.

He said that while prices may remain limited due to the instability associated with the COVID-19 pandemic, they are not expected to fall much more as “the world continues to be under-supplied with oil” and “the producers have no incentive to make more oil.

Looking ahead to the new year, McTeague also suggested that Canadians should be prepared to pay more at the pump, especially once the federal government’s new standard on clean fuels takes effect in December 2022.

“A year from now we’re going to see a 16-cent-per-liter increase all at once with the federal government’s second carbon tax, clean fuel standards, so hang on to your wallets and hang on to your seat belt, ”he said. .

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