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Gas prices expected to drop by at least 10 cents in most of Canada this weekend: analyst

Gas prices are expected to drop by at least 10 cents per litre in most of Canada this weekend after the price of oil plunged Friday, one analyst says.

Dan McTeague, president of Canadians for Affordable Energy, said prices will drop by either 10 or 11 cents by Sunday depending on a province’s tax system.

“This is right across the country, with the exception of the Maritime provinces — Atlantic Canada — which have a regulated system, so they may have to wait unfortunately until next week,” he told Global News.

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McTeague said provinces with an HST system will see a net drop of 11 cents per litre at the pumps come Sunday. He said Quebec will also see a 11-cent drop.

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Provinces with GST will see a drop of 10 cents per litre, he said.

“What we saw today was panic on the world markets as a result of the COVID variant coming out of South Africa,” McTeague said.

Energy stocks took a beating Friday as the price of oil fell more than 13 per cent.

Click to play video: 'No end in sight for high gas and food prices'

No end in sight for high gas and food prices

No end in sight for high gas and food prices – Nov 5, 2021

But McTeague says he doesn’t expect the drop in gas prices to last.

“There is a strong sense, and I would agree with that, that it’s overdone and when U.S. American energy traders get back to work Monday morning after their long weekend, we may very well see the prices move back up as early as Wednesday,” he said.

“So take advantage of this.”

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In the Greater Toronto Area, the average price is expected to drop to 134.9 per litre, which McTeague said hasn’t been seen in the region since Aug. 25.

— with files from The Canadian Press

© 2021 Global News, a division of Corus Entertainment Inc.

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