More relief at the gas pumps in Halifax for the second time this week.
They’re down by about six cents per litre overnight to $1.26 for both regular self-serve and diesel.
Gas Guru Dan McTeague explains it’s an unpredictable time for prices at the pumps as they’re determined by the value of the Canadian dollar and oil.
“Always keep in mind that one of the big variables in the price of gasoline is in fact the value of the Canadian dollar, which continues to be pretty weak, despite higher oil prices,” McTeague says. “Of course there are other taxes that will be added throughout the year for gasoline, so it’s a must-watch.”
Gas prices had been climbing since the summer due to high oil prices.
They hit a record high in Halifax in October when we were paying $1.47 to fill up at the pumps.
Oil pushed $83 a barrel that week amid an international energy resource shortage and surging demand as the global economy tried to emerge from the pandemic.
Omicron COVID-19 variant causing global market concerns
Now market concerns have shifted to the potential global impact of the Omicron COVID-19 variant, which is considered highly mutated.
U.S. crude prices are down 2% at $64 a barrel for oil, while the Canadian dollar is nearly unchanged at 78.00 U.S. cents.
McTeague says the economy is getting pessimistic about the future demand for oil, with gas prices along for the ride.
“At this stage, it’s going to be a bit of a roller coaster at the pumps, so perhaps it’s best to keep an eye on the markets,” McTeague says.
He suggests keeping a close watch on those markets daily along with the global response to the pandemic as we head into the new year.
“Depending on its severity, or if it’s determined to be less severe than expected, so will go the price of gasoline . . . This presents a real opportunity for less demand,” McTeague says. “We’re waiting on the WHO, the World Health Organization, to make a determination on this variant, and if it says it’s severe then all bets are off.”
In total, the cost of fuel has fallen by about 13 cents per litre in Halifax this week after the province’s gas regulator used the interrupter clause on Wednesday.
This is the lowest price we’ve seen in Halifax in many months.
