Big price drop at Lower Mainland, Metro Vancouver pumps expected Wednesday, analyst says

Wait until Wednesday to hit the gas pumps.

Canadians for Affordable Energy President Dan McTeague said prices in the Lower Mainland are set to drop as much as 10 cents.

“If you don’t like $1.37 today, wait till after midnight tonight, it will drop a full eight cents a litre to $1.29 and of course there are many stations that will discount their retail margins,” said McTeague.

“So I wouldn’t be surprised to see gas stations offering as low as $1.23 tomorrow afternoon.”

Oil demand has weakened considerably in recent weeks as the COVID-19 outbreak prompted a widespread decrease in travel.

“We’ve seen prices come down here in the Lower Mainland and everywhere in North America, much of it having to do with the new coronavirus,” McTeague said.

“That, of course, is leading to lessening of demand. And because of the disagreement between Saudi Arabia and Russia where they could not come to an agreement on cutting oil pronunciation, Saudi Arabia flooded the market, and the markets crashed.”

He said the region has not seen prices dip this low since February 2019.

On Monday morning, the New York Stock Exchange and the Toronto Stock Exchange temporarily paused trading after the plummeting oil prices caused stocks to plunge at the market open.

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