Gas prices are dropping. You can thank the 'winter blend' for that
After ticking up earlier this week, gas prices dropped by about eight cents overnight, and could fall by a few more by the weekend according to one expert. But diesel is soaring, which could be bad news — even for those who don't drive.
Gas prices fell 8 cents overnight and could dip by a few more still: expert
Abby Hughes · CBC News
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Drivers rejoice: gas prices in Canada are dropping, thanks to a yearly switch.
Gas prices ticked up earlier this week, reaching a national average of 194.5 cents per litre yesterday according to affordableenergy.ca, but dropped by about eight cents overnight to 186.9 cents per litre as of Friday.
The cost of gas usually goes up in the summer and comes down in the fall because of a mid-September switchover from summer-blend gasoline to a winter blend, says Dan McTeague, the president of Canadians for Affordable Energy.
The different mix of fuel is used to prevent fuel-line freezing and make engines run better in the cold.
McTeague forecasts the cost of gas could drop by another few cents over the weekend before settling.
"But that's probably as good as it's going to get unless someone … can wave a magic wand and get a lot more oil, diesel, jet fuel and gasoline into global markets," McTeague told CBC News Network.
WATCH | Gas prices drop 8 to 10 cents in some Canadian cities:
Gas prices drop 8 to 10 cents in some Canadian cities
3 hours ago|
Duration
4:07
Prices for gasoline fell about eight cents per litre overnight, with some cities seeing the price for a litre fall 20 cents. It's a reversal of the overall trend of higher prices for fuel since the start of the U.S. war in Iran.Fighting in the Middle East has all but shuttered the Strait of Hormuz and compromised the Bab al-Mandeb Strait, disrupting the flow of oil to the rest of the world. Fewer barrels flowing from the region has sent the price of oil way up: the price of a barrel of Brent crude oil soared past the $100-per-barrel U.S. benchmark last week and is now hovering around $104 US.
But diesel, on the other hand, is soaring. The average cost for a litre of diesel across Canada sat at $2.751 as of Thursday, according to Natural Resources Canada, though certain cities like Calgary hovered lower, at $2.513. Vancouver topped the three-dollar mark, with a litre of diesel costing drivers $3.055.
That's bad news even for those who don't drive, according to experts. Trucks that deliver consumer items to stores — including your groceries — as well as tractors that harvest food all tend to run on diesel.
It could mean consumers see higher sticker prices, because companies will have no choice but to pass on the higher cost of fuel to consumers, said Tej Dulat, director of government and public affairs with the Canada Truck Operators Association.
"You're going to see that impact coming on the grocery prices," Dulat told CBC News last week.
ABOUT THE AUTHOR
Abby Hughes is a writer with CBC News based in Toronto. Originally from Orillia, Ont., she studied journalism at Toronto Metropolitan University. She covers news from the worlds of business, entertainment, health, science and education, and her favourite stories focus on the real people in those areas — the customers, fans, patients, citizens and students. You can reach her with story ideas at abby.hughes@cbc.ca.
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