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Gas Prices Expected to Hold Steady

Wednesday, 2 December 2015 05:57

Going into the holiday season gas isn't expected to make big jumps either way.

OXFORD COUNTY - Gas prices in Oxford County have seemed to stabilize around the $1 mark.

Senior Petroleum Analyst for GasBuddy.com and founder of TomorrowsGasPriceToday.com, Dan McTeague says we are expected to hold fairly steady as we get into the holiday season. "I think generally between now and Christmas prices will continue to moderate. It doesn't mean they won't jump up a couple of pennies here and there. It also has to do with the retail margins: a lot of the retailers tend to forgo the 7,8,9 cents a litre that they normally get - that is really the fluctuations you are seeing. There really isn't a whole jump in demand at this time of year."   

McTeague says if you're fondly remembering gas prices from this time last year, you shouldn't start getting your hopes up. "I think that could be really challenged by one big factor and that is crude and gasoline are no longer tied to each other. This time last year when we saw those too good to be true numbers it took 112 Canadian pennies to buy 1 US dollar: today it is 135 pennies."  

Many people are still asking why the price of gas isn't lower when the price of oil is down. "There isn't a glut of gasoline as there is a glut of oil, the two products are no longer in-sync. If things were like they were this time last year you would be probably looking at 88 to 93 cents a litre. Because the Canadian dollar is so weak it means we just don't have the purchasing power to take advantage of these low prices. If I go down to Detroit I can buy gasoline at about 64 cents a litre."  

McTeague adds that big box stores are selling their gas at a loss to entice more traffic to purchase goods in their stores.   

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