‘Uncertainty’ is a word being used a lot to describe how gas prices may change in the coming weeks and months.
A number of factors are at play, according to GasBuddy’s Patrick De Haan who said a change in policy direction from the Organization of the Petroleum Exporting Countries (OPEC) on volume of oil production, along with tariff threats and the broader economy are all factoring in.
But recent announcements of both federal and provincial pauses or removals of the carbon tax levy added another variable to the mix.
“It’s going to be rather uncertain right now, as we now see elections set for a little over a month…whether or not the carbon tax pause will be made permanent by Parliament,” De Haan said. “For now, it’s merely a pause, but that pause could send gas prices down by over 15 cents a litre as we move into April.”
Prices in the Nanaimo area hovered around 166.9 cents per litre at most stations on Thursday, March 27, while drivers in Ladysmith were paying 172.9 cents per litre.
De Haan said on average, stations are around 20 cents per litre cheaper now than they were this time last year.
While economic pressures and ongoing economic instability could impact pricing on a global scale, a more niche variable is the carbon tax.
De Haan said a pause, or permanent removal, might not bring the relief some believe it will.
“There are certain ways that carbon tax could come back, if it’s pushed up towards the industry, or if there’s a further tax on industry, it may again be funnelled down towards the end consumer ultimately, so temporary relief, very unsure what that could look like in the weeks ahead as we get closer to an election.”
A vast majority of stations across Canada have already shifted to a costlier ‘summer gas’, according to De Haan, which typically increases prices at the pump every spring.
source & photo: NanaimoNewsNOW
