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Gasoline prices in Metro Vancouver fell on Friday, but bailouts may be short-lived

Oil analyst Vijay Muralidharan believes the decline is more of a moment than the beginning of a downtrend.

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Metro Vancouver drivers found some relief on Friday’s pumps as prices fell below $ 2 per liter in some places, but the relief could be short-lived.

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After the price exceeded $ 2 on Friday, it fell by as much as 15 cents per liter, and many Metro Vancouver gas stations on Thursday set record prices for regular gasoline at $ 2.14 per liter.

Vijay Muralidharan, an Alberta-based oil consultant at Kalibrate, believes the decline is more of a moment than the beginning of a downtrend.

“I don’t think gasoline prices will go down,” he said Thursday.

Price declines are 17% on Wednesday oil prices down to $ 105 a barrel from last week’s high of $ 140, triggered by the war in Ukraine and the US decision to stop oil imports from Russia. It was due to what I did.

“Everyone was worried. They thought the world would oppose Russia, but that didn’t happen,” Muralitaran said. “But if China and India decide to sanction Russia, that could easily change.”

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Canada has also banned oil imports from Russia. This is largely a symbolic move since Canada last purchased oil from the country in 2019.

The sharp rise in fuel prices was largely due to Russia’s invasion of Ukraine, but gas demand was strong even before the outbreak of the war, suggesting that post-COVID recovery is underway.

And as North America is at the pinnacle of the summer driving season, more people traveling on road trips and family trips are likely to see demand surge again, he said.

“Just because everything is in the air,” Muralitaran said next month’s fuel prices could fluctuate between $ 1.85 and $ 2.15 per liter.

With soaring gasoline prices, drivers and Canadians are appealing to politicians for pump breaks.

Ottawa is being asked to suspend the collection of carbon taxes, which will be raised to 11 cents per liter on April 1. Alberta, which earns profitable oil revenues, will stop collecting local fuel taxes of 13 cents per liter. .. BC says it has no plans for a similar move.

chchan@postmedia.com

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Gasoline prices in Metro Vancouver fell on Friday, but bailouts may be short-lived

Source link Gasoline prices in Metro Vancouver fell on Friday, but bailouts may be short-lived

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