Gas prices have steadily dropped in the Nanaimo over as the summer has progressed. (Alex Rawnsley/NanaimoNewsNOW)

By NanaimoNewsNOW Staff

volatile industry

Gas price pain forecast to ease as expensive summer driving season winds down

Aug 18, 2022 | 5:30 AM

NANAIMO — While volatility at the pumps is expected to remain, an industry insider believes a notable drop in gas prices over the next several months is a good bet.

Patrick DeHaan, head of petroleum analyses with GasBuddy said oil prices rising and gas supply reducing recently pushed the average price at B.C. gas stations upward by about two cents a litre last week.

However, record-high prices in place earlier in the summer are likely behind us, DeHaan noted.

“While we do maybe see some upward potential as we enter hurricane season, which certainly can disrupt oil production, there is still a lot of downward pressure on prices simply because we are getting close to the end of the summer driving season.”

He said there is most certainly room for gas prices to rise in the interim, but stated any potential jumps likely won’t be substantial.

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“I think we’re in pretty good shape and that prices by the end of the year in BC could drop back to the 160’s, maybe even lower depending on all of this economic news, how we navigate all of that.”

DeHaan cited uncertainty around the global and North American economies as key reasons to expect swings in gas prices to continue.

He said it’s difficult to pinpoint where gas prices are going, particularly during widespread uncertain economic times.

“There’s just not a whole lot of clarity on what direction the global economy may be moving.”

Nanaimo region gasoline prices are currently in the low to mid $1.80 a litre range for basic unleaded gas, well below record highs established in May and June.

Prices hit as high as $226.9 a litre in Nanaimo in mid May, while prices neared 2.40 a litre on the Lower Mainland in early June.

Statistics Canada cited lower gas prices last month slowed the pace of inflation to 7.6 per cent in July, down from June’s 40-year-high of 8.1 per cent.

–with files from Jon de Roo, 97.3 FM The Eagle

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