Gasoline prices drop again after big jump

Gasoline prices hit their lowest level in five months last week, falling below $1.60 per liter for the first time since February.

Ottawa motorists will want to wait to fill up on Friday August 12 after a sharp rise in gas prices is followed by another significant drop at midnight.

Roger McKnight, Chief Oil Analyst at En-Pro International, says CityNews gas prices at most Ottawa stations will drop six cents on Saturday August 13 after jumping eight cents on Friday.

Drivers can expect to pay $1.689 a liter at the pump once the clock strikes midnight, down from $1.749 a liter.

Gasoline prices hit their lowest level in five months last week, falling below $1.60 per liter for the first time since February.

Gasoline prices in Ottawa peaked at $2.159 per liter in June.

Speaking to Bloomberg last week, McKnight warned that last week’s relatively low gas prices would not last long, saying the drop in prices was due to slowing demand and could be a sign of trouble for the economy in the coming months.

“Why has demand dropped? The inflation situation has made things more expensive for consumers,” says McKnight. “So we have the shadow of a recession looming behind us.”

He says the threat of a slowing economy has caused many families to delay summer vacation plans and trips where they would normally travel longer distances.

“Things are starting to close in a bit, so that doesn’t bode very well if we’re heading into the fall.”

In the United States, gasoline prices have just dropped to below $4 per gallon for the first time in more than five months

Oil prices began to rise in mid-2020 as economies recovered from the initial shock of the pandemic. They rose again when the United States and its allies announced sanctions against Russian oil following Russia’s war against Ukraine.

Recently, however, oil prices have fallen on concerns about slowing economic growth around the world. Benchmark U.S. crude oil recently fell nearly $90 a barrel from more than $120 a barrel in June.

With files from The Associated Press.

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