Ottawa drivers will want to fill up the gas tank Saturday night as prices hit their lowest levels in more than three months.
Canadians for Affordable Energy president Dan McTeague says after falling 10 cents a liter over the past two days, prices are expected to rise by seven cents a liter on Sunday.
“This is probably as good as it’s going to get,” McTeague told CTV News Ottawa on Saturday. “I don’t think there will be a global collapse yet.
Petrol prices fell six cents a liter on Saturday, after falling four cents on Friday.
“It’s been pretty cheap lately,” said driver Nick Lozier as he filled up his tanks for a trip to Toronto. “Recently filled $2.05, $206, but for $2.01 I’m very happy.”
McTeague told CTV News Ottawa earlier this week that the drop in gas prices is related to a drop in demand in the United States. On July 1, the Ontario government cut the gas tax for six months to help drivers.
McTeague says lower fuel prices will lead to more demand, which could lead to higher prices in the future.
“This could lead to much higher prices in the future and the reason is very simply that it will stimulate demand and that demand cannot be met with limited supply.” So it’s short-term gain, long-term pain, unfortunately,” McTeague said.
The price of a liter of gas was $1.74 a liter on Good Friday in April.
Gasoline prices have been falling for more than a month after hitting a record 215.9 cents a liter in Ottawa on June 11.
“It feels good that it’s going down,” said driver Joe Kiraly, setting off on a trip from Val-des-Monts to Cambridge.
“I think we’re being ripped off and no matter what, there’s always some excuse to raise the price and never an excuse to lower it.”
McTeague says the lower prices won’t last long.
“So I think that’s probably the sweet spot for the next week or so, after that observation, I think we’re back to $2 a litre,” McTeague said.
Sunday’s seven-cent-a-litre increase will bring gas prices in Ottawa to $1.75 a litre.
According to ottawagasprices.com, the average price of gasoline in Ottawa a year ago was $1.25 per litre.
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