Metro Vancouver motorists shouldn't count on gasoline prices falling too much further

Gasoline price drop nearly done for B.C. motorists: analyst

Plunging crude oil prices thought to be near bottom, leaving little room for more pump price relief

A petroleum industry expert says plunging crude oil prices may be close to a bottom, meaning B.C. motorists shouldn’t expect gasoline prices to fall much further.

Metro Vancouver gas prices averaged $1.19 per litre Wednesday, down 17 per cent from their mid-summer plateau of around $1.42.

Jason Parent, vice-president of consulting for MJ Ervin and Associates, said there may be room for gasoline prices to drop a little more at the pumps as a result of crude’s fall, but not a huge amount.

Jason Parent“We’re talking two or three cents,” Parent said. “Generally I see retail gas prices hovering around where they are right now – plus or minus five cents – and then creep up a little more in the spring.”

Crude oil had run at more than US $100 a barrel for the first half of the year before falling 35 per cent to less than $70.

Crude’s decline turned into a nose dive last week when the OPEC cartel announced it wouldn’t cut production to prop up oil prices, creating the spectre of a global supply glut and protracted low prices that could force some energy firms out of business.

Some analysts have suggested crude oil could fall as low as $30 a barrel.

“I just don’t see that,” Parent said. “I’m of the opinion that while we may not be at the  bottom in terms of crude prices, I think we’re getting pretty close to that range.”

Parent said it would take an “epic” drop in the price of crude below its current level for gas prices to drop below $1 a litre, particularly in Metro Vancouver, where TransLink’s fuel tax adds 17 cents.

“You guys are taxed more than anyone else in the country,” he said.

Parent said gasoline prices in Canada haven’t fallen as much as in the U.S. because of the decline in the Canadian dollar against the U.S. greenback.

Vancouver Historical Gas Price Charts Provided by GasBuddy.com

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The annual Rotary Christmas Parade won’t be going ahead this year as it did last year, rolling through downtown Chilliwack on Saturday, Dec. 7, 2019. (Jenna Hauck/ Chilliwack Progress file)
Rotary Christmas Celebration for children will replace downtown Chilliwack parade this year

Parade committee felt it ‘inappropriate’ to host Christmas parade with thousands in the stands

The number of new COVID-19 cases in the Fraser South region has doubled in the last two weeks. The number of cases in the Fraser East region has tripled.
Chart: Tyler Olsen
COVID-19 surge in B.C. fuelled by spikes in new cases in Fraser Valley & Surrey area

Number of newly confirmed cases has tripled in Fraser Valley and doubled in the Surrey/Langley area

John Redekop, with wife Doris, was the 2019 recipient of the Betty Urquhart Community Service Award from UFV. (Photo courtesy of UFV)
Nominations open until Oct. 30 for UFV’s Betty Urquhart Awards

Award recognizes ‘significant impact’ of volunteer work by an individual or group

Jennifer Greggain has accepted a new role with Golf Canada, coaching the country’s top junior athletes. (Jenna Hauck/ Chilliwack Progress)
Chilliwack’s Jennifer Greggain gets new role with Golf Canada

Greggain is now one of two people guiding the country’s top junior golfers

Chilliwack mayor Ken Popove set up shop in the Lil’ Joes food truck Thursday afternoon, handing out hotdogs to Chilliwack Central elementary school students. (Eric J. Welsh/ Chilliwack Progress)
Chilliwack Community Services kicks off ‘I Care’ campaign with hotdog handout

The fifth annual year-end fundraiser hopes to raise $110,000 to fund CCS programs

B.C. Liberal leader Andrew Wilkinson, B.C. NDP leader John Horgan and B.C. Greens leader Sonia Furstenau. (Black Press Media)
VIDEO: One day until B.C. voters go to the polls in snap election defined by pandemic

NDP Leader John Horgan’s decision to call an election comes more than a year ahead of schedule and during a pandemic

100 Mile Conservation officer Joel Kline gingerly holds an injured but very much alive bald eagle after extracting him from a motorist’s minivan. (Photo submitted)
B.C. driver thought he retrieved a dead bald eagle – until it came to life in his backseat

The driver believed the bird to be dead and not unconscious as it turned out to be

Chastity Davis-Alphonse took the time to vote on Oct. 21. B.C’s general Election Day is Saturday, Oct. 24. (Chastity Davis-Alphonse Facebook photo)
B.C. reconciliation advocate encourages Indigenous women to vote in provincial election

Through the power of voice and education Chastity Davis-Alphonse is hopeful for change

White Rock RCMP Staff Sgt. Kale Pauls has released a report on mental health and policing in the city. (File photos)
White Rock’s top cop wants to bill local health authority for lengthy mental-health calls

‘Suggestion’ included in nine-page review calling for ‘robust’ support for healthcare-led response

A Le Chateau retail store is shown in Montreal on Wednesday July 13, 2016. Le Chateau Inc. says it is seeking court protection from creditors under the Companies’ Creditors Arrangement Act to allow it to liquidate its assets and wind down its operations.THE CANADIAN PRESS/Ryan Remiorz
Clothing retailer Le Chateau plans to close its doors, files for CCAA protection

Le Chateau said it intends to remain fully operational as it liquidates its 123 stores

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

The family of Anika Janz, who died after collapsing at school, has launched a GoFundMe to assist with funeral proceedings. (GoFundMe photo)
Family of student who died launches GoFundMe

Rick Hansen Secondary School student Anika Janz, 14, died after collapsing in PE class

Green party Leader Sonia Furstenau arrives to announce her party’s election platform in New Westminster, B.C., on October 14, 2020. THE CANADIAN PRESS/Jonathan Hayward
B.C. Green party says it’s raised nearly $835,000 in 38 days

NDP Leader John Horgan is holding his final virtual campaign event

Most Read