Calgary gas dips to $1.42 a litre, but analysts warn the relief may not last
Some Alberta stations dipped to $1.19 a litre, but the Iran conflict keeps the outlook uncertain.
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Calgary drivers are paying less at the pump than they have in months. Calgary averaged about $1.42 per litre on Thursday, down nearly 26 cents over the past two weeks, according to Kalibrate Technologies. Some Alberta stations were selling fuel for as little as $1.19 a litre on Friday morning, according to GasBuddy.
The drop follows a sharp fall in North American crude, which slid more than 13 per cent in the past week to about US$90 a barrel. Analysts link part of that move to the U.S. midterm results, which some traders read as a sign of pressure to resolve the conflict in Iran.
The Alberta fuel tax has been paused since Oct. 1, adding 13 cents a litre of relief on top of the federal 10-cent pause in place since April.
Patrick De Haan of GasBuddy said long-term relief depends on the Iran situation. Suzanne Gray of Kalibrate said the oil decline could be a short-term reaction rather than a lasting trend. Each US$10 move in crude translates to roughly nine cents a litre at the pump, she said.
