A Canada Day miracle: Gas prices at 7-year low for July long weekend – Business

In what might be described as a Canada Day miracle, the price of gasoline across the country is expected to be the lowest it’s been in seven years for a July long weekend.

According to research done by GasBuddy.com, gasoline prices in Canada are averaging $1.04 per litre, 14 cents per litre lower than the 10-year average. That’s the lowest since 2010, even though gasoline taxes have risen in many provinces in the past seven years.

Gasoline prices are least expensive in Manitoba this month and highest in British Columbia, according to GasBuddy.com. (GasBuddy.com/CBC)

As well, in a rare switch, gasoline has been less expensive in June than it was in January. Summer gasoline blends have fewer emissions and are more expensive to refine, one of the reasons why gas prices move up in the summer.

“Motorists are getting a well-deserved break at the pump after years of high summer gas prices,” said Dan McTeague, a senior petroleum analyst with GasBuddy, in a release. “Call it an early Christmas present in July, complete with fireworks in the skies rather than at the pumps.”

Gasoline demand lower

Three factors are at play in the gasoline market this summer: 

  • A downturn in the price of crude, which has hovered around $45 US for the past several weeks.
  • Lower than expected demand for gas as the summer driving season starts. 
  • Large inventories of gasoline in the United States.

According to Roger McKnight, a senior petroleum analyst with En-Pro, demand for gasoline in the United States is lower than it was a year ago.

“It’s been in negative territory since the start of the year,” he said. “Some people have said that the mileage performance of [vehicles is] better than last year, but I find it kind of strange, because the highest-selling vehicles are light trucks and SUVs.”

According to the U.S. Energy Information Administration, demand over the past four weeks is 1.6 per cent lower than it was a year ago.

Gasoline supplies high

Much has been…

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