Gas prices plummet in Metro Vancouver as the price of oil drops

VANCOUVER (NEWS 1130) – 129.9 cents a liter. That’s what the price of gas was at several stations in Vancouver, following a price drop at the pumps on Wednesday.

According to petroleum analyst Dan McTeague, this is only the beginning.

“And I wouldn’t be surprised to see another two-cent drop come Friday,” he says. “And the reason for that is simply that would appear Saudi Arabia and now the United Arab Emirates have decided to as it were, gang up and continue to flood the market and already saturated oil market. So consumers are the big benefactors.”

While some drivers are happy with the price drop, others are worried about the change means economically.

“I guess as a driver it’s good because obviously everybody loves paying less but as an overall economical in global issue,” one driver says. It’s not great. And we haven’t seen gas price oil prices this low since 91, and 92. So I think we’re looking at a recession.”

Others say they plan on taking advantage of the cheap gas while they can.

“If it goes to 129.9 cents per litre I’m gonna like fill up barrels and put them in my back seat,” one driver adds.

On Monday, oil prices plunged by a record 25% as a price war between producers rages on, and concerns over COVID-19 continue to rise.

McTeague says overall the fuel supply is higher than normal, and it’s drivers who are reaping the benefit.

“I think we’re going to continue to see prices trending up or down. There’s really no bottom yet on oil prices,” he says. “Some were suggesting as early as Saturday that we could see 20 to $24 barrel oil. We’re at about 33 right now. I wouldn’t be surprised to see prices perhaps you know, decline another five to seven cents a litre.”