Gas prices expected to drop
Posted October 19, 2011 4:38 pm.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – Gas prices usually drop after the summer, so why are Vancouverites still emptying their pockets at the pumps?
Petroleum industry analyst Jason Parent with the Kent group says prices are extremely high for this season.
“Normally gas prices fall off this time of year. That has to do with refiners margins decreasing, we come off the summer driving season and demand for fine product is down usually. Thus we have lower refining margins and lower wholesale prices which reflect retail prices.”
Parent says crude oil prices have been fluctuating over the last month on a daily basis. He says prices depend on which direction they go.
The analyst says it’s not likely we are going to see refining margins holding steady or increasing, so it is likely to see prices coming down.
Parent says taxation in Vancouver is a contributing factor to high gas prices.
“It plays a huge factor in why Vancouver’s gas prices are higher than most other places in the country.”
Metro Vancouver mayors have voted in favour of a two cents per litre gas tax hike to fund regional transit projects and service improvements. This will set the stage for a price jump at the pumps next spring.
