Prices in Nanaimo for gas continue to hover in the mid-160 cents per litre range, with analysts predicting a further drop over the coming weeks. (Alex Rawnsley/NanaimoNewsNOW)

By NanaimoNewsNOW Staff

PRICE ADJUSTMENT

Island gas prices ‘shaping up rather nicely’ for 15 to 25 cent drop over coming weeks

Nov 23, 2022 | 2:50 PM

NANAIMO — After months of near-constant climbs, some recent relief at the pump looks set to continue.

The price for regular gasoline on Wednesday, Nov. 23 hovered around 165.9 cents per litre throughout much of the mid-Island, down from highs in the low $2 range throughout the summer.

Patrick de Haan, an analyst with GasBuddy, said the price corrections seen so far could just be the start of things to come.

“We could be down another 15 to 25 cents a litre if everything goes well here by the end of the year. Obviously markets could change so there is a caveat on that prediction on a bigger drop, but things are shaping up rather nicely.”

As is typical with gas prices at local pumps, global forces are at play.

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Prices went up through the summer in part to refinery issues in various places around the world, including in the United States, as well as Russia’s war in Ukraine.

de Haan said it translated to some historically high pricing at home.

“Really the entire West Coast of Canada and the United States have seen prices surging as a result of that, well over $2 a litre in much of B.C., but now that refineries have gotten back online and maintenance has wrapped up, we’ve seen broad relief.”

Further price drops are projected, in part due to the COVID-19 pandemic in China.

The Chinese government has instituted strict lockdowns of its people where case counts are high, reducing demand.

“That’s a big deal when it comes to the price of oil simply because China is one of the world’s largest oil consumers,” de Haan added.

Despite some relief for drivers using gasoline, diesel tanks will still be costly to top up.

Like gasoline, diesel prices peaked above $2 per litre, with areas of eastern Canada and the Maritimes even briefly cresting $3 earlier this year.

“Diesel sees peak consumption in the coldest months…there will not be as much relief for the price of diesel as it compares to gasoline.”

The average price for gas in B.C. is 171.6 cents per litre, just below the nationwide high of 172.7 cents in New Brunswick.

Canada’s average is 157.1 cents per litre, led by Alberta with an average cost of 142.8 cents.

— with files from Jon de Roo, 97.3 The Eagle

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