The price at the pump is down in several regions of Quebec, including in Montérégie where the current average price is posted at 201.9/L, once morest 207.2/L last week, thus contrasting with 211.5/L for the last month.
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In Montreal, the average price was 206.7 cents/litre on Sunday, compared to 210.4 cents/litre last week.
The price has even reached 200 in Boucherville in the last 24 hours according to figures from CAA Quebec.
Across Quebec, the average price was 210.7/L last week and fell to 207.8/L on Sunday.
Contrary to the trend, the average price in Quebec City remained stable with a constant average of 216.9/L.
However, this would be a temporary respite for consumers, according to the president of Canadians for Affordable Energy, Dan McTeague. The war in Ukraine and inflation should continue to dictate market moods according to the former member of the House of Commons who worked under the banner of the Liberals.
The latter had anticipated a considerable drop in prices at the pump and had predicted on Twitter on Friday that the price would drop to 202.9/L in Montreal.
Solutions that are not unanimous
Recall that Ontario announced a reduction in the provincial tax on Friday in order to reduce the bill for these residents, which will be in effect until December 31, 2022. It is currently one of the only provinces in the country to have adopted such a measure, with Newfoundland and Alberta.
In Quebec, 32 cents per liter of taxes are charged to consumers, according to figures from TVA Nouvelles.
However, according to the professor in the department of economics at the University of Ottawa, Jean-Thomas Bernard, lowering taxes would not be a viable solution. In fact, the latter reported in an interview with TVA Nouvelles that the tax cut will not correct the problem caused by the strong demand, which is coming up once morest a limited supply.
“Artificially lowering the price does nothing to increase supply,” Bernard explained. He also pointed out that the increase in demand is not abnormal in the summer season, where “the distribution margins are the highest”.