The price of a liter of gasoline fell significantly for the first time since the beginning of December, but this bonanza will only be short-lived.
• Read also: Rising gas prices: Uber compensates with additional costs
• Read also: Rise in gasoline: a difficult end to the season for a snowmobile relay
Friday morning, many service stations posted $ 1.849 per liter of regular gasoline in Quebec, while it was selling at $ 1.959 / L the day before.
Ditto in Montreal, where motorists were able to fill up with gas for less than $1,860/L, more than 10 cents less than the day before in some establishments.
This is the first significant drop since the beginning of December, according to CAA-Quebec.
This drastic drop in the liter of gasoline is a direct result of Wednesday’s announcement of talks between Russia and Ukraine, which were held the next day.
The price of a barrel of Brent oil, which came close to $140 per unit on Sunday, fell to hover near the $100 mark on Thursday.
A volatile market
“Every announcement related to the conflict in Ukraine now has an impact on the market. The volatility is extreme. We can’t even predict where the price will be at the end of the day,” says Carol Montreuil, vice-president for Eastern Canada of the Canadian Fuels Association.
Normally, a barrel price fluctuation of $1 or $2 in one day is considered high. Right now it can move anywhere from $10 to $15 in 24 hours.
“It shows how much we are in a crisis situation,” said Mr. Montreuil, who invites motorists to take advantage of this windfall while they can.
“We will be able to breathe for a few days, but it won’t last,” warns Dan McTeague, president of the organization Canadians for Affordable Energy.
Not at the end of our sorrows
According to Mr. McTeague, who has been analyzing the price of gasoline for years, the price at the pump should rise again no later than the middle of next week.
The price of Brent had already risen above the $112 mark on Friday noon. An increase probably linked to the inability of the Russian Foreign Minister and his Ukrainian counterpart to agree on a ceasefire.
And that’s not to mention the arrival of spring, when prices rise every year for different reasons, and the possibility of a possible embargo on Russian oil.
“The problem is that we don’t have a plan B in terms of oil production. We need Russian oil to meet demand, ”laments Mr. McTeague.
Ordinary Gasoline The most expensive : 2,019 $/L
Ordinary Gasoline the least expensive : 1,849 $/L
Difference : 17 cents
Realistic price: 1,856 $/L
Ordinary Gasoline The most expensive : 1,959 $/L
Ordinary Gasoline the least expensive : 1,799 $/L
Difference : 16 cents
Realistic price: 1,845 $/L
Sources: Gasbuddy and CAA-Quebec