Drivers may have noticed a big decrease at gas stations around Grande Prairie, and, according to experts, those prices could plummet even further in the coming weeks.
Head of Petroleum Analysis at GasBuddy.com Patrick De Haan says the ongoing spat between Saudi Arabia and Russia, which has upped the global supply of oil, combined with the lack of demand due to restrictions on travel has taken much of Canada into unchartered territory.
“Oil prices haven’t been this low in five years, and gas prices… are at their lowest since the flash crash of 2016, but aside from a period of a few weeks in 2016, I can’t find lower prices going back to the recession.”
“You know gas prices are a barometer of sorts, but when you’re stuck inside, the only thing that’s joyous about low prices is staring at the sign,” he adds.
De Haan says prices will eventually rebound when Russia and Saudi Arabia decide to cut oil production, with a second-round likely to follow when the heaviest COVID-19 related restrictions are eventually lifted. However, in the meantime, we could see prices that haven’t been witnessed in the province in decades.
“Just imagine it in a couple of weeks, and I believe it’s possible we could see prices in Edmonton, and perhaps [across] Alberta drop to 59.9 [cents per litre].”
“You know, you have a lot of these buzzwords like unprecedented and shocking, this is one of the moments that is living up to that.”
As of March 17th, the average gas prices in Grande Prairie were hovering around 85.9 cents per litre.