Although the dropping price of oil may be hampering the Canadian economy, it is helping motorists — and those in the Comox Valley — filling up at the pump.
With the price of a barrel of oil dropping below $85 this week, as of Tuesday, drivers are filling up their tanks at $1.15 per litre at stations around the Valley.
Jason Toews, Gasbuddy.com co-founder — a website dedicated to monitoring gas prices in real time — said there are various factors contributing to the lower prices.
“Certainly the drop in crude oil will have a big impact, but there are other factors like the time of the year.”
Toews explained summer driving season is officially over and as a result, there is a drop in demand for gas.
With the drop in barrel prices, Toews said the impact will be felt at the pumps in the future.
“Because it’s crude oil, it’s not going to be gas tomorrow. The impact will be felt over several weeks, probably closer to the end of the year.”
Toews estimated until the end of the year, expect fluctuations at the pump between six to 10 cents, depending upon the demand.
Although the price of a barrel of oil is dropping, Toews noted the price can only drop to a certain limit.
“There’s only so low it can go. It’s really expensive to produce oil; it costs between $50 to $70 per barrel to produce, so I can’t see it dropping any lower than $55 per barrel.”
He added oil companies will actually stop producing oil if the price dips significantly, and will take a certain amount off the market to begin to drive the price higher.
To compare prices around the Comox Valley are other areas in the province, visit www.gasbuddy.com.