The COVID-19 outbreak has caused gas prices to drop exponentially in Huntsville.
As of Friday, prices at the pump were sitting around .79 cents a litre.
President of Canadians for Affordable Energy Dan McTeague says we can expect prices to drop slightly more before seeing a rise again next week, with the Federal Carbon Tax expected to take effect on April 1st.
“I see prices here getting to around .75 cents a litre but then quickly moving back above .80 cents unless of course there is a complete collapse in oil prices which may or may not happen, it’s too early to tell. But with that, of course, will be not as significant as a drop in prices as we’d think,” McTeague said.
At the beginning of March, the price of oil was sitting around $51 per barrel and since it has dropped to $21.71.
McTeague notes the Coronavirus pandemic has everything to do with the drop, having caused a detrimental impact on the oil industry.
As long as the pandemic is ongoing, he says the prices could remain around the same level as they are now.
“Just a month ago we were around $1.18 a litre and now down near .79 cents. So you can see how a virtual .40 cent a litre decrease has everything to do with the dramatic drop in oil prices.”
The Federal government has yet to announce whether it will go forward with its planned carbon tax, which is set to take effect on April 1st and will see prices increase from $20 per tonne to $30 per tonne.
Until the tax comes into effect, McTeague says we should be able to enjoy a discount at the pump.
“Gas stations that are selling fuel that they bought last week are finding themselves in a situation where they were paying as much as .10 cents a litre more,” McTeague added. “For a lot of them, it’s a gradual process in which they can start to get less expensive fuel. So, 78.9 is great but I’d expect to see more of a drop in the coming days.”
You can find the best gas prices in town on the GasBuddy app or by heading to their website.