Expect Very Small Change in Gas; Diesel Prices This Week

Posted on Thursday, January 11, 2018 13:15 PM

Like last week, don't expect a big change in gas prices this week.

The utility and review board makes its weekly price adjustment at midnight.

Senior petroleum analyst for Gasbuddy.com, Dan McTeague, says we might see a very slight decrease in the price of a litre of gasoline.

"It looks like we'll get a little bit of the same as last week. a slight decrease, it looks like about a penny, it might be less, it might be a little bit more. It's very hard to estimate how the board will evaluate its forward averaging, it's very subjective."

He says diesel will likely increase by a cent a litre or a little less.

McTeague says the recent harsh weather in the U-S Northeast haven't affected inventories.

"We've dodged a bullet. We've seen inventories for gasoline producers and diesel producers remain fairly stable, except for U.S. exports of petroleum products like gasoline and diesel. We're at levels that are slightly higher than they were last year on the gasoline side. On the oil side, a very different matter because of course very large shipments of U.s. oil externally. More globally, the Russian and OPEC decision to cut back production has started to bite into global supplies of oil, that's why we're seeing oil move in one direction which is up while gasoline is moving down. It really speaks to the need for the public's understanding that they are two very different commodities. Although they are linked, we have examples throughout this week where oil has moved up while gasoline has not moved or in some instances has actually dropped. It's a tale of two commodities, often two very different outcomes. That may not last forever, we may very well start to see oil firm up and by the early part of February, if there's another extended, prolonged period of cold or disruptions in production of gasoline or diesel, then oil bets are off, prices could start to rise. The final matter here is the Canadian dollar. If it begins to weaken, we price and purchase all of our fuel in U.S terms, so that means if we see a weakening loonie then expect to see a bump at the pumps."