Fuel for thought – prices are dropping, but for how long?
Alberta’s suspension of the 13-cent-per-litre provincial fuel tax came into effect yesterday, and Okotoks residents are already seeing the effects. As of October 1, the average price of regular gas in Okotoks was 166.9 cents per litre, down from 176.2 cents per litre on September 30.
According to Patrick De Haan, head of petroleum analysis at GasBuddy, prices may continue to drop as stations sell through their existing fuel supplies and purchase untaxed fuel. “You’re not going to necessarily see a 13-cent drop all at once,” De Haan said. “Stations that bought fuel yesterday have potentially thousands of liters that they paid tax on and are unlikely to want to pass the full drop along.”
As of yesterday, the provincial average gas price in Alberta was 162.2 cents per litre, down 5 cents from the previous week. De Haan noted that it’s difficult to predict where prices will be when the tax break lifts on December 31, citing ongoing geopolitical tensions.
It’s worth noting that the suspension of the fuel tax will remain in place until the end of the year, and it’s possible to see some price changes in the grocery store due to lower transportation costs during the tax break.
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